Biotech Implosion: ICAgen Drops on Trial Termination
by Jon C. Ogg
24/7 Wall St.
ICAgen's (ICGN-NASDAQ) stock is being crushed in after-hours trading, although the trading volume is very light. Shares are down 37% to $1.15 after closing down 2.6% today. Read on, because this one sounds in trouble.
Following a planned meeting of the independent Data Monitoring Committee of its ASSERT trial of senicapoc (formerly ICA-17043) for the treatment of sickle cell disease in adults, the DMC recommended that the trial be terminated because of the low probability of achieving a reduction in crisis rate, the primary endpoint. The DMC noted that data from the trial indicated the expected increases in hemoglobin and hematocrit and decreases in reticulocytes as well as LDH and bilirubin, both markers of hemolysis. There were no statistically significant differences in safety measurements between the senicapoc and placebo treatment groups. The Company has informed the FDA of its plan to terminate the study based upon the DMC's recommendation. Ouch.
It still has some pre-clinical studies, which we noted over the weekend, in compounds that are being studied in Dementia and Alzheimer's Disease. Unfortunately, pre-clinical studies are one thing. Failing a PHASE III is kick where it counts. This company only had a $69.5 million market cap before the drop, so now it is indicated around $46 million. It had $25.1 million in cash as of 12/31/06 and was burning roughly $6 million per quarter, so it is not in a great cash spot and this news has the shot of closing off the capital markets via traditional financing terms.
Source: 247WallSt.com
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24/7 Wall St.
ICAgen's (ICGN-NASDAQ) stock is being crushed in after-hours trading, although the trading volume is very light. Shares are down 37% to $1.15 after closing down 2.6% today. Read on, because this one sounds in trouble.
Following a planned meeting of the independent Data Monitoring Committee of its ASSERT trial of senicapoc (formerly ICA-17043) for the treatment of sickle cell disease in adults, the DMC recommended that the trial be terminated because of the low probability of achieving a reduction in crisis rate, the primary endpoint. The DMC noted that data from the trial indicated the expected increases in hemoglobin and hematocrit and decreases in reticulocytes as well as LDH and bilirubin, both markers of hemolysis. There were no statistically significant differences in safety measurements between the senicapoc and placebo treatment groups. The Company has informed the FDA of its plan to terminate the study based upon the DMC's recommendation. Ouch.
It still has some pre-clinical studies, which we noted over the weekend, in compounds that are being studied in Dementia and Alzheimer's Disease. Unfortunately, pre-clinical studies are one thing. Failing a PHASE III is kick where it counts. This company only had a $69.5 million market cap before the drop, so now it is indicated around $46 million. It had $25.1 million in cash as of 12/31/06 and was burning roughly $6 million per quarter, so it is not in a great cash spot and this news has the shot of closing off the capital markets via traditional financing terms.
Source: 247WallSt.com
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posted by Nico at
12:05 AM
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