Latigo (LTGO) Falls 24.8% on CEO Change, Trial Update

Latigo Biotherapeutics (LTGO) shares were down 24.8% in early regular trading on November 5, 2026, after the company reported third quarter results, changed its main Phase 3 trial and named Todd Smith CEO in place of Nima Farzan. The onzotrigine bunionectomy trial now adds an opioid comparator arm and is expected to enroll about 480 patients, with topline results still due in the second half of 2027.

What Latigo Biotherapeutics reported

Metric	Q3 2026	Q3 2025	Change
Research and development (R&D) expenses	$17.5M	$22.1M	-20.8%
General and administrative (G&A) expenses	$5.4M	$2.6M	+107%
Total operating expenses	$22.9M	$24.7M	-7.3%
Net loss	$20.9M	$24.8M	-15.5%

The company has no product sales yet. The quarter's loss included a $4.6 million loss on paying off debt early, offset by a $5.1 million gain from revaluing a derivative liability. Cash was $401.2 million at September 30, which Latigo expects to fund operations into 2029.

The redesigned bunionectomy trial will give about 200 patients onzotrigine, 80 patients oxycodone/acetaminophen (Percocet) and about 200 patients placebo. The company says Percocet is 1.5 times as strong as Vicodin, the opioid used in its earlier abdominoplasty trial. Smith gets a $775,000 base salary, a target bonus of 70% of salary and stock options with a grant-date value of $20 million. Farzan stays an employee through January 1, 2027, then becomes a consultant through December 31, 2027, and will receive his 2026 bonus at 100% of target.

Why the stock fell 24.8%

The drop was nearly five times the stock's typical daily swing. The CEO change took effect on November 3, less than three months after the company's August 7, 2026 IPO prospectus, and was disclosed alongside the results rather than separately. Adding a stronger opioid comparator also raises the bar onzotrigine must clear in its next pivotal trial, while the timeline for results did not move earlier.

What to watch next

Onzotrigine abdominoplasty and cold pressor presentations at the ASRA meeting on November 6, 2026.
Initiation of the Phase 3 bunionectomy and open-label safety trials.
Topline Phase 2 results for LTG-321 in knee osteoarthritis, expected in the second half of 2027.

FAQ

Who is Latigo Biotherapeutics' new CEO?

Todd Smith, who was already a director and now leaves the board's Audit and Compensation Committees. The board shrank from seven to six members after Farzan resigned, which the filing says was not due to any disagreement.

What is onzotrigine?

An oral, non-opioid NaV1.8 inhibitor for acute pain. In the abdominoplasty trial, 36% of patients on the high dose achieved more than 70% pain reduction at 24 hours, versus 24% on Vicodin and 13% on placebo.

Sources

This article is for information only and is not investment advice.