This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

GPC Biotech Drug Fails Trial

GPC Biotech (GPCB) tanked and Spectrum Pharmaceuticals (SPPI - Get Report) took a hit after saying Wednesday that the phase III SPARC trial on prostate cancer drug Orplanta (satraplatin) failed to show a survival benefit.

GPC licenses the drug for hormone-refractory prostate cancer from Spectrum. In July, the Oncology Drugs Advisory Committee (ODAC) recommended that the Food and Drug Administration wait to approve Orplanta until overall survival data from the SPARC trial were available, questioning the methodology of research that was submitted. Subsequently, GPC withdrew its new-drug application for accelerated approval.

Orplanta was the lead product candidate for GPC, which has an antibody in early-stage development for the treatment of lymphoid cancers, but no other mid- or late-stage prospects. GPC's shares fell $6.64, or 58%, to $4.80 -- $5.45 below its 52-week low. Spectrum, meanwhile, fell 51 cents, or 12.3%, to $3.65.

After removing Orplanta-related revenue and milestones from his model for Spectrum Pharmaceuticals, Rodman & Renshaw analyst Reni Benjamin arrived at a 12-month price target of $6. However, he seemed optimistic about Spectrum's bigger picture, noting a report: "While we are disappointed with the SPARC trial outcome, we believe Spectrum has a strong, advanced stage product portfolio that will generate shareholder value in the long-term."

Specifically, Benjamin is looking at the advancement of EOquin in two late-stage trials for low-risk superficial bladder cancer and a potential international partner for that program, and potential IIb data from the ongoing ozarelix trial in benign prostatic hyperplasia (BPH) in the second quarter of 2008 with the potential to initiate late-stage trials in 2008.

Shares of Pharmion (PHRM), which has the right to market the drug in Europe, were seemingly unaffected. The stock rose $1.22, or 2.7%, to $48.59. Pharmion is set to release third-quarter earnings today after the close.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SPPI $7.12 -2.30%
AAPL $95.18 1.60%
FB $117.44 -0.95%
GOOG $692.33 -0.84%
TSLA $232.12 -4.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs