GTx execs' sole drug fails the lead indication study in a painful setback -- shares smashed
GTx’s $GTXI big catalyst has blown up in their faces.
The Memphis-based biotech says that their Phase II ASTRID study comparing two doses of enobosarm for significantly reducing instances of stress urinary incontinence failed, which investors will not want to hear.
This was GTx’s lead indication on its one and only clinical-stage drug, and their stock imploded on the news, dropping more than 90% in an extinction-level event.
Researchers say that the two doses scored 58.9% and 57.7% at reducing the rate of incontinence by more than 50%, their primary endpoint. But the control group hit 52.7%, leaving them in the range of chance.
Stifel has been a booster, supporting the stock. Analysts noted recently:
We believe GTXI has significant upside potential from current levels, as SUI looks to be a potential multi-billion dollar opportunity for enobosarm – the only drug in development for the condition. End of quarter cash totaled $45.7M, sufficient to fund enobosarm development into 2019 (full financials included within).
Executive Chairman Robert Wills pledged a thorough review of the data, but also signaled a look at other possible alternatives to focus on, including their preclinical androgen receptor degrader technology to treat castration-resistant prostate cancer. “We are currently on target to have development candidates by year end, which we potentially plan to take into IND-enabling studies.”