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NEW YORK (TheStreet) -- Oncothyreon  (ONTY) plunged Tuesday after the biotech company announced its lung cancer drug tecemotide did not meet its primary endpoint in a Phase 1/2 study in Japan.

Merck (MRK) - Get Merck & Co., Inc. (MRK) Report  conducted the study of 178 patients with Stage III non-small cell lung cancer and compared tecemotide to a placebo. The drug "did not meet its primary endpoint of an improvement in overall survival, and no treatment effect was seen in any of the secondary endpoints (progression free survival, time to progression or time to failure)," according to Oncothyreon's filing with the Securities and Exchange Commission.

Oncothyreon disclosed that Merck "has advised Oncothyreon that it will recommend that the investigational treatment in the study be discontinued and that no recruitment of Japanese patients into the Phase 3 program of tecemotide will take place."

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Wedbush cut its price target on Oncothyreon to $3 on Tuesday in the wake of the news.

The stock was down 18.76% to $2.26 to 1:03 p.m. More than 5.6 million shares had changed hands, compared to the average volume of 554,053.

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