Celgene Corporation (NASDAQ: CELG) is having a rough start to the trading session in the pre-market hours, and for good reason. The stock is falling as the result of a failed clinical trial. Today, we’ll talk about the trial, what we’re seeing from CELG, and what we’ll be watching for ahead.
CELG Clinical Trial Fails
As mentioned above, Celgene Corporation is having a rough start in the pre-market this morning. The declines are ultimately the result of an after-hours announcement of results from a phase 3, randomized, open-label, international study known as RELEVANCE.
The study surrounded the evaluation of REVLIMID plus rituximab followed by rituximab maintenance in comparison to the standard of care, rituximab plus chemotherapy, followed by rituximab maintenance. The treatment was being developed for patients with previously untreated follicular lymphoma.
According to the press release released by CELG, the treatment did not achieve superiority in any of the co-primary endpoints. These emploints included complete response or unconfirmed complete response at 120 weeks and progression free survival during the pre-planned analysis. While safety findings were consistent with the known profiles of these regimens, efficacy proved to be a miss. In a statement, Professor Gilles Salles, President of the Lymphoma Study Association, had the following to offer with regard to the CELG study:
“This is the first Phase III trial to evaluate a chemotherapy-free regimen to the established standard of care in patients with previously untreated follicular lymphoma and represents a landmark study in this disease setting… We look forward to further analyzing and presenting these important data at a future medical congress.”
What We’re Seeing From The Stock
Unfortunately, in the world of biotechnology, when a clinical study proves to be a failure, we tend to see declines in the value of the stock. That’s exactly what we’re seeing from Celgene Corporation this morning. Of course, our partners at Trade Ideas were the first to alert us to the fall. Currently (8:43), CELG is trading at $102.60 per share after a loss of $5.28 per share or 4.89% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CELG. In particular, we’re interested in following the company’s impressive pipeline of clinical stage products as well as sales of products already being commercialized. While the failed trial is a big blow to the company, Celgene Corporation is one of the big players in pharma and the future still looks bright!
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