By Adriano Marchese

Vistagen Therapeutics Shares fell sharply in premarket trading Wednesday after it said that its phase 3 trials of its social anxiety therapy didn't meet its endpoints.

The stock traded 73% lower ahead of the morning bell at $1.18.

The clinical-stage biopharmaceutical company said Wednesday that its experimental intranasal treatment called fasedienol didn't meet either of its primary or secondary endpoints in the Palisade-3 phase 3 study.

The drug is intended to treat acute social anxiety disorder but didn't demonstrate statistically significant improvements.

The phase 3 study tested whether a single dose of fasedienol could reduce anxiety during a public speaking challenge. Participants could later continue using the drug for up to a year in daily life.

Chief Executive Shawn Singh said the company is reviewing the data and plans to seek feedback from the Food and Drug Administration.

"We are disappointed by the unexpected results of this public speaking challenge trial, which are inconsistent with positive outcomes observed in Phase 2 and our Palisade-2 Phase 3 study," said Singh.

The company is now in cash preservation mode, implementing measures to provide it with a reserve to last into 2027, it said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

December 17, 2025 09:05 ET (14:05 GMT)

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