Incyte Corporation (NASDAQ: INCY) is falling apart in the market today after announcing that a Phase 3 clinical trial, in collaboration with Merck & Co., Inc. (NYSE: MRK) has ended with less-than-positive data. Of course, this struck fear in the minds of investors, sending the stock tumbling down. Today, we’ll talk about:
- The clinical results;
- what we’re seeing from the stock as a result;
- and what we’ll be watching for ahead.
INCY Falls Hard On Failed Clinical Results
As mentioned above, Incyte Corporation is falling apart after announcing that a clinical trial that it was working on with Merck has failed. In a press release issued early this morning, the company announced that an external Data Monitoring Committee (eDMC) review of the Phase 3 ECHO-301/KEYNOTE-252 clinical trial has determined that the study did not meet the primary endpoint. The study evaluated epacadostat, a product developed by INCY, in combination with KEYTRUDA®, a product designed by MRK, in patients with unresectable or metastatic melanoma. The missed primary endpoint was improved progression-free survival in the overall population when compared to KEYTRUDA alone.
In the release, INCY said that the second primary endpoint of overall survival also is not expected to reach any statistical significance. As a result of the missed endpoints, and at the recommendation of the eDMC, the company announced that it will cease operations associated with the study. In a statement, Steven Stein, M.D., CEO at INCY, had the following to offer:
While we are disappointed that this study did not confirm the efficacy of epacadostat in combination with KEYTRUDA in patients with unresectable or metastatic melanoma, data from ECHO-301/KEYNOTE-252, including analyses of an extensive biomarker panel, will contribute to our understanding of the role of IDO1 inhibition in combination with PD-1 antagonists, and may inform our broader epacadostat clinical development program… We remain dedicated to transforming the treatment of cancer and will continue to explore how IDO1 inhibition and other novel mechanisms can potentially improve outcomes for patients in need.
What We’re Seeing From The Stock
Unfortunately, with the bad news in the spotlight, INCY simply can’t be expected to generate any form of positive movement in the market today. At the end of the day, investors are upset with the failure, and that disappointment is showing in the share price of Incyte. Of course, our partners at Trade Ideas were the first to alert us to the declines. At the moment (9:17), INCY is trading at $66.30 per share after a loss of $16.77 per share or 20.19% 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 INCY. In particular, we’re interested in following the story surrounding the next moves by the company followed the failed clinical trial. While the stock is definitely stumbling today, Incyte is a relatively strong company and will likely bounce back from today’s declines over time. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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