Shares of OncoMed Pharmaceuticals Inc. closed the day down 3.74% to $3.86 per share. The plunge came after both JMP and Piper Jaffray downgraded the company’s rating.
Both firms gave the same reason for the cut: OncoMed announced that their lung cancer drug, Tarextumab, didn’t meet endpoints in Phase 2 of its clinical trial.
The results of the clinical trial of the cancer drug with chemotherapy showed little difference from the combination of chemotherapy and placebo.
"Small cell lung cancer is a very difficult-to-treat disease and unfortunately, tarextumab did not show benefit over placebo in this Phase 2 trial," said Paul J. Hastings, OncoMed's Chairman, and CEO.
Furthermore, OMED gave another factor for the rating cut. The pharmaceuticals company also announced that the enrollment of brontictuzumab to Phase 1, a drug for colorectal cancer, has been discontinued.
The company said that it is going to “undertake a comprehensive portfolio prioritization review immediately.”
Things will not look too good for the drug developer, if they don’t put their “focus on rebuilding the research and development pipeline in a capital-efficient manner,” Leerink Partners analysts Michael Schmidt wrote in a note.
Currently, OncoMed has six drug candidates being evaluated in ten clinical studies. All of them are either in progress or have begun enrolling patients. 2017 will not be a good year for the company if a few more its drugs follow the trend of its predecessors.
OncoMed’s stock has lost 50% of its value since the beginning of 2017.
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Here's Why OncoMed Pharmaceuticals (OMED) Stock Fell Today
Shares of OncoMed Pharmaceuticals Inc. closed the day down 3.74% to $3.86 per share. The plunge came after both JMP and Piper Jaffray downgraded the company’s rating.
Both firms gave the same reason for the cut: OncoMed announced that their lung cancer drug, Tarextumab, didn’t meet endpoints in Phase 2 of its clinical trial.
The results of the clinical trial of the cancer drug with chemotherapy showed little difference from the combination of chemotherapy and placebo.
"Small cell lung cancer is a very difficult-to-treat disease and unfortunately, tarextumab did not show benefit over placebo in this Phase 2 trial," said Paul J. Hastings, OncoMed's Chairman, and CEO.
Furthermore, OMED gave another factor for the rating cut. The pharmaceuticals company also announced that the enrollment of brontictuzumab to Phase 1, a drug for colorectal cancer, has been discontinued.
The company said that it is going to “undertake a comprehensive portfolio prioritization review immediately.”
Things will not look too good for the drug developer, if they don’t put their “focus on rebuilding the research and development pipeline in a capital-efficient manner,” Leerink Partners analysts Michael Schmidt wrote in a note.
Currently, OncoMed has six drug candidates being evaluated in ten clinical studies. All of them are either in progress or have begun enrolling patients. 2017 will not be a good year for the company if a few more its drugs follow the trend of its predecessors.
OncoMed’s stock has lost 50% of its value since the beginning of 2017.
Sell These Stocks. Now.
Just released: today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>