It’s undoubtedly a disappointing day for Vascular Biogenics (NASDAQ:VBLT), also known as VBL Therapeutics, and for VBLT stock holders. A fresh press release disclosed the company’s results for a proposed ovarian cancer treatment. Unfortunately, the top-line data didn’t meet Vascular Biogenics’ anticipated primary endpoints.
Vascular Biogenics develops therapies for cancer and immune-inflammatory diseases. The company’s lead oncology product candidate is called Ofra-Vec. It uses vascular disruption to starve a tumor’s blood supply.
Yesterday, after the financial markets had closed for the day, Vascular Biogenics disclosed its top-line data from a Phase 3 OVAL clinical trial of Ofra-Vec in platinum-resistant ovarian cancer. As you might expect with a tiny biotech firm, the results were practically make-or-break for Vascular Biogenics.
As it turned out, the announced results were more “break” than “make” for the company. Disappointingly, the Ofra-Vec trial “did not meet the primary endpoints of achieving a statistically significant improvement in progression-free survival (PFS) or overall survival (OS).”
What’s Happening With VBLT Stock?
The impact on VBLT stock today was dramatic, to say the least. The share price plummeted nearly 80%, from over $2 to less than 50 cents. Moreover, the daily trading volume was enormous, approaching 20 million shares midday. On a typical day, a couple hundred thousand Vascular Biogenics shares might change hands.
Understandably, Vascular Biogenics CEO Dror Harats stated that he was “deeply disappointed” in the clinical trial’s results. The CEO also revealed that Vascular Biogenics plans to discontinue the OVAL trial for Ofra-Vec.
There may be a glimmer of hope, though, as Vascular Biogenics prepares to review various clinical data and “determine next steps with the ofra-vec program.” Clearly, however, this expression of optimism wasn’t enough to stanch the flow of selling activity in VBLT stock today. Until further notice, then, the bears are in control and the burden of proof rests firmly on Vascular Biogenics.
On the date of publication, David Moadel did not have (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.