By Krishnakali Sengupta
BANGALORE, May 25 (Reuters) - GTx Inc said its experimental prostate cancer drug did not show statistical significance in preventing cancer in high-risk patients in a late-stage trial, sending its shares down 34 percent in extended trade.
The drug, toremifene, at 20 milligrams dosage did not show sufficient reduction in cancers compared to a dummy drug over a three-year period, the company said in a statement.
Cowen & Co analyst Eric Schmidt said the late-stage trial results were the only catalyst the market was looking at and that he does not expect the stock to recover in the near-term.
'Before today there was some hope and optimism, but I guess today's result puts the final nail on the coffin for this indication,' he said.
However, GTx said the incidence of prostate cancer was lower in high-risk patients given toremifene compared to the dummy drug.
GTx submitted a protocol with the U.S. health regulator for an 80 milligram late-stage trial of the drug and will meet with the agency this summer to finalize the trial design, it said.
Analyst Schmidt said he does not see any clear opportunity for the drug going forward and thinks the company will discontinue development of the drug.
Shares of the company were down at $1.99 in after-market trade. They closed at $3.02 Tuesday on Nasdaq.
(Reporting by Krishnakali Sengupta; Editing by Unnikrishnan Nair) Keywords: GTX/ (krishnakali.sengupta@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: krishnakali.sengupta.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
BANGALORE, May 25 (Reuters) - GTx Inc said its experimental prostate cancer drug did not show statistical significance in preventing cancer in high-risk patients in a late-stage trial, sending its shares down 34 percent in extended trade.
The drug, toremifene, at 20 milligrams dosage did not show sufficient reduction in cancers compared to a dummy drug over a three-year period, the company said in a statement.
Cowen & Co analyst Eric Schmidt said the late-stage trial results were the only catalyst the market was looking at and that he does not expect the stock to recover in the near-term.
'Before today there was some hope and optimism, but I guess today's result puts the final nail on the coffin for this indication,' he said.
However, GTx said the incidence of prostate cancer was lower in high-risk patients given toremifene compared to the dummy drug.
GTx submitted a protocol with the U.S. health regulator for an 80 milligram late-stage trial of the drug and will meet with the agency this summer to finalize the trial design, it said.
Analyst Schmidt said he does not see any clear opportunity for the drug going forward and thinks the company will discontinue development of the drug.
Shares of the company were down at $1.99 in after-market trade. They closed at $3.02 Tuesday on Nasdaq.
(Reporting by Krishnakali Sengupta; Editing by Unnikrishnan Nair) Keywords: GTX/ (krishnakali.sengupta@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: krishnakali.sengupta.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.