Why Calithera Biosciences Stock Is Plunging Today
Calithera Biosciences (NASDAQ: CALA), a clinical-stage biotech company, reported on Monday morning that telaglenastat, one of its leading pipeline candidates, flopped in a clinical trial. As a result, investors are selling-off shares of the company. As of 11:53 a.m. EST on Monday, Calithera Biosciences' stock is down by 43% after dropping by as much as 49.9% earlier today.
The clinical trial in question investigated the efficacy of the combination of telaglenastat, an experimental cancer treatment, and cabozantinib, a cancer drug marketed by Exelixis, on patients with advanced or metastatic renal cell carcinoma (RCC). The primary endpoint of the study was improvement in progression-free survival (the amount of time during and after treatment the patient lives with cancer without experiencing worsening symptoms), compared to treatment with cabozantinib alone.
Unfortunately, the combination of telaglenastat and cabozantinib didn't meet the primary endpoint of the study. As a result of this outcome, Calithera Biosciences will cut its workforce by about 35% and focus its financial resources on other ongoing studies.
Source Fool.com
