Axovant's Phase II Parkinson's trial results, dubbed 'positive,' don't impress

Shares of New York-based Axovant Gene Therapies (Nasdaq: AXGT) climbed more than 15% Monday morning to $5.25, after the company said it plans to announce six-month safety and efficacy data from the second cohort of study of its investigational gene therapy for Parkinson's disease, AXO-Lenti-PD, on October 6.

However, when the data were released yesterday, the shares of the US gene therapy company plunged almost 22% to $4.40.

Most treatment strategies use oral medication to increase dopamine in the brain, but the effects wax and wane. Despite PD not being a true genetic disease, Axovant is using a gene therapy approach to treat it. AXO-Lenti-PD is a gene therapy that turns other neurons in the brain into dopamine factories. Empowering these cells to make dopamine could lead to a dramatic improvement for patients that liberates them from the inconsistent benefits of traditional medicine, the company noted.