NEW YORK (TheStreet) -- Celldex Therapeutics (CLDX) shares fell 21% to $13.10 in trading on Wednesday despite the biopharmaceutical company reporting third quarter financial results ahead of analysts' expectations.
The company said yesterday that enrollment into the phase III study of glembatumumab (CDX-011) in patients with triple-negative breast cancer was slower than had been expected and as a result the company will broaden the study's eligibility criteria. Enrollment into the study now will continue into 2016, longer than had been previously expected by investors.
As for its earnings results, the company posted a net loss of 31 cents per diluted share that was 2 cents better than the 33 cents per share analysts were expecting it to lose.
Celldex generated revenue of $1.1 million during the quarter, more than triple analysts' expectations of $326,800 for the period.
Shares fell despite the beat, however, following news of the new enrollment criteria, as well as the fact that the company's 31 cent loss is 2 cents per share worse than the 29 cents per share it lost during the same period last year .
TheStreet Ratings team rates CELLDEX THERAPEUTICS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CELLDEX THERAPEUTICS INC (CLDX) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."