FDA places Bright Minds seizure drug BMB-101 on partial hold over mouse toxicity, shares plunge

The U.S. Food and Drug Administration issued a partial clinical hold on BMB-101, an experimental seizure treatment from Bright Minds Biosciences, after regulators identified toxicity concerns in preclinical mouse studies.

Bright Minds announced the hold on Monday, noting that the drug cannot move forward in clinical testing until the safety issues are addressed.

The news sent the company's stock sharply lower, reflecting investor worry about the regulatory setback.