A pair of biotechs are feeling the hurt Tuesday.
Shares of Axovant Sciences Ltd. (AXON) - Get Free Report tumbled after the firm said its Phase 3 study of intepirdine in patients with Alzheimer's disease did not achieve its co-primary efficacy endpoints.
The stock ended the trading session at $6.33, down nearly 74%.
In a note on Tuesday morning, Jefferies LLC analyst Michael J. Yee wrote that the stock is likely to fall towards the downside scenario but it "may likely recover in time" as Axovant is likely to "quickly pivot towards other new programs."
In a statement, Axovant CEO David Hung, M.D. said, "While we are deeply disappointed by these trial results, we also are saddened for the millions of patients and families impacted by Alzheimer's disease. However, we believe that the fight against Alzheimer's and other important areas of unmet need in neurology is too important to be derailed by this setback."
The company continues to be committed to advancing its pipeline, Hung said.
Meanwhile, shares of Genocea Biosciences Inc. (GNCA) - Get Free Report closed at $1.25, down 76.6%, after the Cambridge, Mass.-based company on Monday announced a shift to immuno-oncology and a focus on developing neoantigen cancer vaccines, including its lead candidate GEN-009. It plans to file an investigational new drug application for GEN-009 by early 2018.
The company also said it is exploring strategic options for GEN-003, its Phase 3-ready investigational immunotherapy for treating genital herpes. Genocea said it is ending GEN-003 spending and activities and is trimming its workforce by about 40%.
Among the other stock movers was Akebia Therapeutics Inc. (AKBA) - Get Free Report , which closed at $17.53, down 2%. The Cambridge, Mass.-based firm on Tuesday unveiled positive topline results from a Phase 2 study of vadadustat in Japanese patients with anemia associated with non-dialysis-dependent chronic kidney disease.
By yearend, Akebia and Mitsubishi Tanabe Pharma Corp. plan to announce topline data from a Phase 2 study of vadadustat in dialysis patients with CKD and commence a Phase 3 development program in non-dialysis patients in Japan.
Also on Tuesday, Akebia announced a new pact with Mitsubishi Tanabe that gives the latter an option to access data from Akebia's global Phase 3 vadadustat program for payments of up to $25 million to Akebia.
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