CTI BioPharma Corp (NASDAQ: CTIC) is having an incredibly rough start to the trading session this morning, and for good reason. The company announced that a clinical trial failed to meet its primary endpoint, upsetting investors who are sending the stock spiraling down. Today, we’ll talk about:
- The clinical results;
- what we’re seeing from CTIC as a result; and
- what we’ll be watching for with regard to the stock ahead.
CTIC Heads For The Bottom On Failed Trial
As mentioned above, CTI BioPharma is having an incredibly rough start to the trading session this morning after announcing that a clinical trial has proven to fail. In a press release issued early this morning, the company announced that the pivotal Phase III clinical trial evaluating PIXUVRI® (pixantrone) in combination with rituximab in comparison to gemcitabine combined with rituximab in patients with aggressive B-cell non-Hodgkin lymphoma (NHL) did not meet its primary endpoint of improvement in progression-free-survival (PFS). In a statement, Adam Craig, MD, PhD, CEO at CTIC, had the following to offer:
We are disappointed with the outcome of the PIX306 trial and will proceed to conduct a thorough review of clinical data to assess the next steps for the PIXUVRI program… We would like to express our appreciation to the patients, families and investigators who participated in the study.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of CTI BioPharma, the news proved to be overwhelmingly negative. After all, when a clinical trial fails, the asset in the middle of the trial is usually scrapped, leading to loss. Of course, the news upset investors who are now sending the stock spiraling down. Currently (9:28), CTIC is trading at $4.35 per share after a loss of $0.85 per share or 16.35% 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 CTIC. In particular, we’re interested in following the company’s next moves following the news of the failed clinical trial. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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