Biopharmaceutical company Nektar Therapeutics (NASDAQ:NKTR) is down big today after announcing disappointing results regarding its melanoma therapy. The news clearly displeased Nektar investors. NKTR stock has shed nearly 60% of its value so far today.
So what do you need to know?
Well, the company announced the combination of its experimental therapy, bempegaldesleukin, with Bristol-Myers Squibb’s (NYSE:BMY) Opdivo, was an ineffective treatment for melanoma. The company compared the combination to Opdivo alone, in a Phase 3 clinical trial with patients with melanoma. Late-stage trials of the combination have been disbanded after they failed to meet certain endpoints.
As part of the 738-patient study, the drug combination was unable to meet its three goals:
- Improve the overall survival rate
- Demonstrate a reduction of cancer
- Increase the amount of time it takes for the cancer to worsen
Nektar and Bristol-Myers Squibb have stated they would continue their four other studies for the combination therapy. The studies are testing the treatment’s effectiveness in treating renal cell carcinoma and bladder cancer.
NKTR has been on a downward descent for years now, and today’s news has only furthered its troubles.
NKTR Stock Hits 52-Week Low Following Trial Cancellation
Since reaching its all-time high above $100 in November 2018, Nektar has seemingly only seen red. Currently the company is trading around $4.30 after its drop.
Today’s news comes just a week after Oppenheimer analysts estimated the worldwide sales for bempegaldesleukin could reach $3.7 billion by 2038. With Nektar failing to reach a number of its goals, the company has stated plans to limit cash outflows. CEO Howard Robin said:
“We’re preparing a plan that has the goal of establishing a minimum cash runway to the end of at least 2024 with our existing cash balance.”
Nektar investors are surely feeling the bearish wave hitting the markets of late. Whether Nektar is able to turn things around with its other clinical trials remains to be seen.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.