Kosan Shares Fall on Cancer Study Data
Monday December 10, 6:33 pm ET
Kosan Biosciences Shares Fall on Early Cancer Drug Study Showing Lower Response
NEW YORK (AP) -- Shares of Kosan Biosciences Inc. plunged to a new low Monday after the biotechnology company said new data showed its cancer treatment candidate generated a lower response rate than previously reported.
The stock fell $2.47, or 42.7 percent, to $3.31 Monday, a new 52-week low. Previously the stock ranged between $4 and $7.35 over the past year.
At the 49th Annual American Society of Hematology conference in Atlanta this weekend, Kosan said the response rate of its multiple myeloma treatment candidate tanespimycin was lower in an early-stage study than in a prior study involving a lower dose rate.
The study included 71 patients receiving a combination of tanespimysin and Millennium Pharmaceutical Corp.'s Velcade. Some of the patients had received previous treatment with Velcade.
Nevertheless, Cowen and Co. analyst Eric Schmidt reaffirmed an "Outperform" rating, citing the drug candidate's potential.
"Opinion leaders continue to voice strong optimism for tanespimycin's success in Phase III," he wrote in a note to investors. "In addition, new data suggests tanespimycin may reduce Velcade-associated nerve disease, a finding that may have key clinical trial and commercial implications."
He said neuropathy, or nerve damage, is Velcade's "Achilles' heel" and the observed benefit from tanespimycin could lead to extended dosing in a late-stage clinical trial. |
