Biopharmaceutical company Endocyte (ECYT) saw its stock plunge after its ovarian cancer trial drug failed to help patients.
The phase III study was stopped after an analysis showed that vintafolide didn’t demonstrate efficiency when treating patients with platinum-resistant ovarian cancer, the companies said in a statement today. Endocyte, based in West Lafayette, Indiana, declined 62 percent to $6.65 at 9:52 a.m. New York time, after its biggest intraday drop since December 2011. Merck, which has the rights to sell the medicine, dropped 1.3 percent to $58.87.
ECYT stock is down 60% in early morning trading.
Endocyte has no marketed products, but will test the drug vintafolide for lung cancer — which offers a larger market.
“The stoppage was unexpected, mostly because previously both the non-small-cell lung cancer study and other studies that they’re running have run favorable data,” Adnan Butt, an analyst with RBC Capital Markets, told Bloomberg.
Endocyte shares are “going to be overpenalized” until the lung cancer treatment data is released, he said.