Shares of Avalanche Biotechnologies (AAVL) tumbled 27% today after it announced that it will not advance its phase 2 Wet AMD (Wet Age-related macular degeneration)  trial using its AVA-101 gene therapy treatment. This comes months after the company previously reported mixed phase 2 results for its AVA-101 treatment versus placebo. The stock also tumbled big on the day of that news, as investors were not greatly impressed with the data. Patients taking AVA-101 saw an increase in retinal thickening over those who only took placebo instead. 

The company has finally decided to not advance this clinical phase 2 program at this time. Instead it has decided to take AVA-101 back to pre-clinical trials, probably to see if they can modify the drug or adjust dosing appropriately. The company has stated  that they do have another Wet AMD gene therapy treatment known as AVA-201 in pre-clinical research. 

This AVA-201 could also be a long shot considering AVA-101 didn't work, but the company won't know until they advance it. One quick thing to note is that the potential is huge for a drug that focuses on prevention and treatment of Wet AMD. At this point Avalanche is trading below cash value so there might be a chance to buy Avalanche, keeping in mind all the current risks that evolve around the company.