Celldex Therapeutics (CLDX) Stock: Here’s What’s Causing The Big Declines!

Celldex Therapeutics, Inc. (NASDAQ: CLDX)

Celldex Therapeutics is having a horrible day in the market today, and for a very good reason. The company has announced that it is discontinuing a clinical trial that has long been in the works and investors are very disappointed. Today, we’ll talk about the trial discontinuation, how the market reacted to the news, and what we can expect to see from CLDX moving forward.

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CLDX Announces Phase 3 Study Discontinuation

After the closing bell on Friday Celldex made a crushing announcement. The company has discontinued the Phase 3 ACT IV study of RINTEGA, also known as rindopepimut in patients with newly diagnosed EGFRvlll-positive glioblastoma. The study was canceled because it was determined that the primary endpoint, reaching statistically significant improvements in overall survival, would be missed. In a statement, Co-founder, President and CEO at CLDX, Anthony Marucci had the following to say:

We are extremely disappointed for patients that the ACT IV study was not successful…. On behalf of Celldex, I want to express our gratitude to the ACT IV investigators, patients and families who participated in this trial. While this is certainly not the desired outcome, we remain steadfast believers in the power of immunotherapy to transform the future of cancer treatment.”

How The Market Reacted To The News

As investors, we’ve learned that the news moves the market. When there is positive news released with regard to a publicly traded company, we can expect to see gains in the stock associated with that company. Adversely, bad news generally leads to declines. When it comes to the news that was released by CLDX on Friday after the closing bell, it’s clear that the news is overwhelmingly bad. As a result, we’ve seen a massive decline in the value of the stock today. Currently (10:38), CLDX is trading at $4.05 per share after a loss of $4.13 per share or 50.49% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively mixed opinion of what we can expect to see from Celldex. First and foremost, the news that was released today is clearly bad news. Unfortunately, the company has decided to end a key clinical study because they could foresee missing the study’s primary endpoint. This means that CLDX has spent quite a bit of money on hase 1 and Phase 2 trials, as well as a partial Phase 3 trial that did not produce fruitful results. That is a major hit for any clinical-stage biotechnology company.

On the other hand, RINTEGA was not the only treatment in the CLDX pipeline. In fact, for the specific phase at which the company is operating, I have to say that they have a relatively impressive pipeline. In fact, the company is currently conducting 5 phase 2 studies and 6 phase 1 studies of various different treatments. To get a feel for what these treatments are, see the chart below.

Celldex CLDX Pipeline

With all of that said, in the long run, I still have faith in CLDX. The truth is that the RINTEGA study cancellation is crushing. However, Celldex has several impressive studies under way, and I believe that the company is likely to produce groundbreaking results in at least one of these studies relatively soon.

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What Do You Think?

Where do you think CLDX is headed moving forward and why? Let us know your opinion in the comments below!

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