Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Progenics Pharmaceuticals, Inc. Shares Were Hammered

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Progenics Pharmaceuticals (NASDAQ: PGNX  ) , a developer of therapies focused on treating cancer and providing oncology supportive care, dropped as much as 30% after abstracts of its mid-stage study involving experimental prostate cancer antibody-drug conjugate, PSMA-ADC, revealed the death of two patients.

So what: According to a Bloomberg report -- since Progenics has yet to make an official comment yet, but has scheduled a webcast of its mid-stage results for tomorrow -- and the posted abstracts, two prostate cancer patients died of sepsis in its ongoing trial and, as Stifel Nicolaus analyst Brian Klein noted in his interview with Bloomberg, it would suggest that PSMA-ADC has "a major impact on the immune system." The study abstract also appears to show that even lower doses of the drug may result in dangerous levels of toxicity.

Now what: This is certainly not good news for Progenics shareholders, who had high hopes that the company's ADCs would work in similar fashion to other cancer-focused ADCs currently being tested by companies like Seattle Genetics and ImmunoGen. Based on these abstracts, though, it would appear that further testing on PSMA-ADC might be pointless due to the toxicity concerns of the drug. We obviously can't make the determination for certain of whether or not PSMA-ADC will advance to a later stage trial until Progenics reports its findings tomorrow, but I'd say the pendulum is definitely swinging toward this compound being discontinued for safety reasons instead of continuing to be developed.

Is this the smartest investment for 2014?
There’s a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it’s one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2815355, ~/Articles/ArticleHandler.aspx, 8/29/2015 10:41:53 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Sean Williams

A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and in investment planning topics. You'll usually find him writing about Obamacare, marijuana, developing drugs, diagnostics, and medical devices, Social Security, taxes, or any number of other macroeconomic issues.

Today's Market

updated 13 hours ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
PGNX $7.67 Down -0.16 -2.04%
Progenics Pharmace… CAPS Rating: **