Adventrx Regains Some Ground Post-Plunge
Tuesday October 2, 2:05 pm ET
Adventrx Pharmaceuticals Bounces Back Slightly After Monday Plunge on Failed Midstage Study
NEW YORK (AP) -- Shares of Adventrx Pharmaceuticals Inc. recovered slightly Tuesday after losing three-quarters of their value Monday due to the failure of a midstage clinical trial of its colon cancer drug candicate CoFactor.
The stock rose 20 cents, or 36.4 percent, to 75 cents in afternoon trading. On Monday, the stock plummeted to 55 cents from a Friday close of $2.65 after Adventrx said ANX-510, or CoFactor, failed in a Phase IIb clinical trial.
The drug candidate is designed to replace leucovorin, which can be used to protect healthy cells from chemotherapy. The company is in the midst of a 1,200 patient late-stage study of the drug and analysts are worried that similar negative results may be forthcoming.
"Given similar efficacy between CoFactor and Leucovorin, we are less confident that the ongoing 1,200-patient Phase-III trial will show a statistically significant improvement in progression-free survival," wrote ThinkEquity Partners analyst Chris Holterhoff in a note to investors.
He downgraded the stock to "Accumulate" from "Buy" and dropped his price target of $5.
CIBC World Markets analyst Brian Lian raised similar concerns over the Phase III trial in a note to investors on Monday.
Meanwhile, Holterhoff said a decision may be reached to end the development program prematurely if it is determined that there is a small probability CoFactor will meet its goal in the Phase III clinical trial. The company's other development programs, focusing on chemotherapy agents, have only modest value, he said. |
