AKBA Stock Price - Akebia Therapeutics Inc drops to a new 52-week low amidst safety issues with new drug

It certainly has been a nightmare of a week for Akebia (NASDAQ:AKBA) investors as the sudden news of late-stage clinical safety issues sent the stock tumbling down over 70% during Thursday’s trading session. Shares had been up 56% since the beginning of the year – but the one-day loss on Thursday erased all of its gains and the stock is now down nearly 60% year-to-date. A quick look at the trading volume since Thursday shows a high amount of action with over 33 million shares being traded as opposed to the average trading volume of just over 2 million shares. 

The announcement that Akebia’s drug Vadadustat had not passed certain safety requirements in the late stages of a clinical trial brought immediate red-flags up for the investment community. Vadadustat is intended to be a treatment for patients with CKD or Chronic Kidney Disease who are also afflicted with anaemia. While CEO John Butler has insisted that the biotech firm will push forward to seek FDA approval for the drug, investors are clearly not as enthusiastic about Vadadustat’s chances of becoming a viable treatment option. Akebia reported that patients who took Vadadustat were shown to have increased heart risks, especially when compared to a similar treatment made by rival Amgen (NASDAQ:AMGN). 

AKBA stock news 

AKBA’s announcement was unexpected and the sudden plunge of its stock price reflects that. Some bargain investors may see this as a potential buying opportunity with the company determined to march on with its quest for FDA approval. As Akebia and its Japanese pharmaceutical partner, Otsuka, intend to make their pitch to the FDA by the end of this year, investors will want to keep tabs on the progress of the application before taking the plunge.