Shares of Monte Rosa Therapeutics GLUE.O fall 31.5% to a four-month low of $15.54.
Novo Nordisk's NOVOb.CO says its experimental drug, ziltivekimab, failed to reduce the risk of major cardiovascular events versus placebo in a late-stage trial.
Monte Rosa is developing MRT-8102 for atherosclerotic cardiovascular disease, the same disease targeted in Novo's trial.
Novo tested ziltivekimab, an anti-IL-6 antibody, while MRT-8102 is a NEK7 degrader that works upstream in the NLRP3/inflammasome pathway.
Wedbush analyst Robert Driscoll says Novo's trial failure "has significant relevance to GLUE's NEK7 degrader program MRT-8102".
Driscoll says he is "removing credit for MRT-8102 from our valuation" because clinical de-risking will likely be delayed.
"We expect investors to reduce/remove risk-adjusted value the MRT-8102" opportunity in cardiovascular - Guggenheim analyst.
U.S.-listed shares of Novo Nordisk NVO.N are down 9%.
As of the last close, GLUE was down 0.2% year to date.
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