Shares of Deciphera Pharmaceuticals Inc (NASDAQ: DCPH) tanked 75% on Friday morning after the U.S. firm said its INTRIGUE Phase III Clinical Study failed to meet the primary endpoint.
The sharp decline wiped millions off its market cap that now stands at $565 million.
Deciphera studied QINLOCK in GIST patients
Deciphera was studying QINLOCK as a potential treatment for patients with Gastrointestinal Stromal Tumour (GIST).
As per the top-line results of the clinical trial reported this morning, QINLOCK failed to improve progression-free survival (PFS) versus the standard of care Sunitinib in GIST patients.
Deciphera saw participation from 453 patients for its INTRIGUE study that compared efficacy and safety of QINLOCK with Sunitinib. Participants were given 150 mg of QINLOCK or 50 mg of Sunitinib daily for one month.
The news comes only days after Barclays reiterated its “buy” rating on DCPH with a price target of $50.
CEO Steve Hoerter’s remarks
Deciphera will report full results of the Phase III clinical trial at an upcoming medical meeting. In the press release, CEO Steve Hoerter agreed the results were disappointing but appreciated the team for a well-designed, well-executed study. He further added:
QINLOCK remains the standard of care and only approved therapy in patients with fourth-line GIST, and we are committed to ensuring that patients around the world in the fourth-line GIST treatment setting have access to QINLOCK.
Earlier this week, Deciphera said its revenue in the fiscal third quarter printed at $23.2 million that represented an annualised growth of about nearly 50%. The biotech company, however, remained in $79.8 million of net loss – higher than last year’s $63.7 million.
Deciphera had $392.2 million in cash and equivalents as of the end of Q3.
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