Why Did Galmed Plunge 10.27% Despite Oncology Breakthroughs?

On May 7, 2025, Galmed's stock experienced a significant drop of 10.27% in pre-market trading.

Galmed Pharmaceuticals has been actively advancing its oncology program, leveraging its expertise in liver and metabolic diseases. The company recently announced the first set of results from its oncology studies, which showed that Aramchol enhances the efficacy of Bayer's Regorafenib in GI cancer models. This novel drug combination has demonstrated an enhanced tumor-killing effect, with a Phase 1b trial planned for the fourth quarter of 2025 at VCU Massey Cancer Center.

Additionally, Galmed has been focusing on developing new formulations and treatments. The company signed a term sheet for the development of a novel semaglutide sublingual formulation and launched a collaboration with VCU to tackle drug resistance in GI cancers. Galmed also unveiled novel pharmacodynamic blood markers for Aramchol, the most clinically advanced SCD1 inhibitor, further strengthening its position in the market.