Adolor Corp. (ADLR-NASDAQ) may have just joined the ranks of current and future biotech zombies. The company suspended its lead new drug candidate for potential treatment of opioid-induced bowel dysfunction.
Safety concerns prompted the halt after increased risk of heart attacks and other cardiovascular events were witnessed. The company said the data will be further analyzed, but this follows some FDA action requests in November. Per our closing remarks on November 7, 2006: Adolor (ADLR) fell another 5.2% to $7.29 the day after the FDA requested more data for its bowel disorder drug.
This one may have been foreseen, but you wouldn’t know it by the stock price today. Shares are down 58% at $3.59, well under its previous 52-week lows. The prior 52-week trading range was $6.50 to $26.17. Ouch! Its new market cap is only $165 million compared to net current assets (12/31/06) $193.3 million and total liabilities of $47.4 million. It has had a cash burn rate of roughly $20 million after its partnership study fees.
Now it has to figure out what to do, and if the company decides to abandon the study after further reviews then it will have to scale down and go into survival mode. Here is the rest of its pipeline and R&D Structure.
Jon C. Ogg
April 10, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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