(Bloomberg) -- DBV Technologies SA lost two-thirds of its market value after it withdrew a U.S. application for a peanut allergy patch for children, shocking investors and prompting at least four analysts to downgrade the stock.
The French drugmaker's American depositary receipts sank 69 percent to a record low at 11:13 a.m. in New York. The company said its decision followed talks with regulators about “insufficient data on manufacturing procedures and quality controls.” The delay could be months or even up to a year, according to analyst estimates, sparking concerns about DBV's cash position and whether rival Aimmune Therapeutics Inc. may beat it to the market.
Aimmune shares rose as much as 19 percent, their biggest gain in a month. Analysts expect the company to submit a filing for its peanut-allergy drug to regulators by the end of this year with a potential decision in the second half of 2019.
To contact the reporter on this story: Bailey Lipschultz in New York at blipschultz@bloomberg.net
To contact the editor responsible for this story: Catherine Larkin at clarkin4@bloomberg.net
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