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What: Shareholders of Aveo Pharmaceuticals
So what: Just to make things confusing and ensure that you never quite understand what the market is thinking, Aveo's study actually hit many of its efficacy endpoints. Rather than testing its late-stage kidney cancer drug against a placebo, it chose instead to pit tivozanib against Nexavar from Onyx Pharmaceuticals
Now what: Today's news isn't the end of the world for Aveo shareholders, but it definitely takes a lot of wind out of the company's sails. It's already facing the daunting task of going up against Pfizer's Sutent, which is the primary drug currently prescribed for kidney cancer, and now must own up to the fact that its drug possesses only marginal benefits over Nexavar. While there is a market still for tivozanib, expectations for its sales potential definitely took a hit today. I'm perfectly happy sitting on the sidelines and watching at the moment, until Aveo gets its drug approved and gets a few quarters of sales under its belt.
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Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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