SGX Shares Plunge on Halted Cancer Study
Thursday March 27, 5:00 pm ET
SGX Pharmaceuticals Shares Plummet on Move to Halt Cancer Drug Study Over Toxicity Issues
NEW YORK (AP) -- Shares of drug developer SGX Pharmaceuticals are falling sharply, reaching an all-time lowpoint earlier in the day after the company said has halted dosing in a cancer drug study because of toxicity issues.
The stock nosedived to lose more than half its value during the trading session, at one point hitting $1.48, an all-time low. Shares closed down $2.49, or nearly 63 percent, to $1.51.
The company said it found drug candidate SGX-523 was toxic in high doses during two ongoing early-stage clinical trials. It halted dosing in one study and has switched patients a lower dose in another clinical trial.
"The toxicity is of a nature that was not anticipated based on the preclinical profile of SGX523," the company said in a statement.
PiperJaffray analyst Edward A. Tenthoff downgraded the stock to "Sell" from "Neutral" and slashed his price target to $1 from $6, citing the toxicity issue as yet another setback to SGX's drug development pipeline.
Earlier this month, he said, a leukemia treatment program in partnership with Novartis was delayed again.
In 2006, the company had to shelve development of its then lead product candidate, the leukemia drug Troxatyl, after independent reviewers said the drug would likely provide no benefit to patients.
surf's up......crikey
