Agenus Inc (NASDAQ:AGEN) Looses Sheen After Lung Cancer Trial Data Disappoints
Agenus Inc (NASDAQ:AGEN) saw its market valuation go down by a double digit margins yesterday. The trigger for the sell off could be traced to the Form 8K filing that the company did with SEC before markets opened yesterday. The filings related to the company updating the regulator about the reversal it has faced, in its phase 3 trials that it was pursuing for its target drug for treating lung cancer in association with GlaxoSmithKline plc (ADR) (NYSE:GSK).
Reversal In Phase 3 Tests
The phase three trials were being conducted by the larger drug maker GlaxoSmithKline plc (ADR) (NYSE:GSK) and it reported yesterday (European time) that its top line results for two parameters were not meeting the end goal objectives, the companies had set for themselves ahead of the initiation of the trails.
Likely To Continue Testing
The large capped multinational held out hope for Agenus Inc (NASDAQ:AGEN), when it indicated that their third party evaluators had determined that the data collected was supportive of continuation of the trail in pursuit of meeting the third end point goal, which if met would mean the test drug compound could still hold commercial value to both companies. The end results for all the three end points are likely to be gathered only by mid 2015.
Origins: From Tree Bark
The potential lung cancer treatment drug has been code named as “Agenus’ SQ-21 Stimulon” had been developed by the small cap drug maker by using extracts from the bark of a tree which was found only in the ever green forests of the Amazon.
These disheartening data points from the eagerly awaited test results resulted in the stock of the development stage drug maker plummeting yesterday. Now that the hopes of the drug leading to a commercial launch are largely diminished, the investors and the stake holders of the drug firm would be switching their focus on the next promising drug in their development pipeline.