Arbutus Biopharma Corporation (ABUS)

[Ubertino]

Tekmira Tumbles On Ominous Signs For Ebola Drug


BY AMY REEVES, INVESTOR'S BUSINESS DAILY
12:49 PM ET

Biotech Tekmira Pharmaceuticals (NASDAQ:TKMR) fell more than 10% Friday to a six-month low after an update on its Ebola program induced a loss of investor confidence.

Tekmira said that the phase-two trial of TKM-Ebola-Guinea — one of two drugs the firm is working on to treat two strains of the virus — had closed enrollment because "the endpoint indicated that continuing enrollment was not likely to demonstrate an overall therapeutic benefit," according to the press release. Full results of the trial will be available once the analysis is completed, Tekmira said.

While that didn't formally mean failure, the signs don't look good, RBC Capital Markets analyst Michael Yee wrote in a research note.

"Although full efficacy results are pending, the language suggests that this open-label single-arm study likely did not demonstrate benefit vs. historical control," Yee wrote. However, he added that the Ebola trial was always a "free upside opportunity," while the real value of the stock resides in the company's hepatitis B program.

In fact, in a note Monday, Maxim Group analyst Jason Kolbert wrote that he'd been hearing speculation that Tekmira will split in two, with the hepatitis B assets going to one entity and everything else to the other. "Recent domain names that were secured by the company suggest management is exploring ideas," he added.

Tekmira's Ebola competitor BioCryst (NASDAQ:BCRX) rose 4% to a nine-year high in morning trading on the stock market today, but the stock already had been showing big-money buying, up nearly 10% in heavy volume Thursday.

http://news.investors.com/technology/061915-758090-tkmr-stock-falls-as-ebola-trial-closed.htm