Adagio suffers rapid drop after announcing Omicron data

US biopharma Adagio Therapeutics (Nasdaq: ADGI) was trading 80% lower at lunchtime on Tuesday after providing an update following external in vitro analyses to evaluate neutralizing activity of ADG20 against the Omicron SARS-CoV-2 variant.

The in vitro data generated through both authentic and pseudovirus testing of the Omicron variant show a greater than 300-fold reduction in neutralizing activity of ADG20 against Omicron.

"The Omicron spike protein led to a reduction in ADG20 neutralization that was not suggested by prior data"Additional analyses are ongoing, and the company says that it plans to engage with regulatory and government agencies to assess the role ADG20 can play for the prevention and treatment of COVID-19, particularly as the industry’s understanding of the epidemiology and impact of Omicron and potential new variants develops.