Vistagen Therapeutics Faces Class Action Lawsuit, Stock Plummets Over 80%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Globenewswire
- Lawsuit Initiation: Vistagen Therapeutics is facing a class action lawsuit due to misleading statements made between April 1, 2024, and December 16, 2025, under case number 3:26-cv-00427, highlighting significant failures in its clinical trials.
- Clinical Trial Failure: On December 17, 2025, Vistagen announced that its PALISADE-3 Phase 3 trial did not achieve statistically significant improvement on its primary endpoint, leading to a loss of investor confidence and exacerbating the stock price decline.
- Stock Price Crash: Following the trial results announcement, Vistagen's stock plummeted from $4.36 per share on December 16, 2025, to $0.86 per share on December 17, representing a decline of over 80%, reflecting market pessimism regarding the company's future prospects.
- Investor Rights Protection: Levi & Korsinsky LLP urges VTGN shareholders to apply as lead plaintiffs before the March 16, 2026 deadline to ensure compensation for losses caused by corporate misrepresentations, demonstrating a commitment to protecting investor rights.
Analyst Views on VTGN
Wall Street analysts forecast VTGN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VTGN is 15.50 USD with a low forecast of 12.00 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 0.702
Low
12.00
Averages
15.50
High
19.00
Current: 0.702
Low
12.00
Averages
15.50
High
19.00
About VTGN
Vistagen Therapeutics, Inc. is a late clinical-stage biopharmaceutical company. The Company is leveraging a deep understanding of nose-to-brain neurocircuitry to develop and commercialize a new class of intranasal product candidates called pherines. Pherines specifically and selectively bind as agonists on peripheral receptors on human nasal chemosensory neurons and are designed to activate olfactory bulb-to-brain neurocircuits believed to regulate brain areas involved in behavior and autonomic nervous system activity. Its neuroscience product candidates include Fasedienol, Itruvone, PH15, PH80, and PH284. Fasedienol, its lead clinical-stage product candidate, is a synthetic neuroactive intranasal pherine in an ongoing U.S. registration-directed Phase III clinical development program for the acute treatment of anxiety in adults with SAD. Its neuroscience pipeline also includes an oral prodrug with potential to treat certain neurological conditions involving the NMDA receptor.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
