Celldex Therapeutics Inc. (NASDAQ: CLDX) shares were absolutely crushed on Monday morning after the firm announced results to its midstage breast cancer study. Specifically, the firm’s Phase 2b Metric Study of glembatumumab vedotin compared to Xeloda (capecitabine) in patients with metastatic triple-negative breast cancers that overexpress gpNMB failed to meet its primary endpoint.

The study’s progression-free survival as assessed by an independent, central reading of patient scans was the primary endpoint. There was no significant advantage for glembatumumab vedotin in key secondary endpoints, including overall response rate, duration of response and overall survival.

Celldex believes its pipeline prioritization and organizational restructuring efforts will extend financial resources beyond the guidance issued in its year-end 2017 earnings press release and associated filings. The firm plans to provide revised guidance in its first quarter 2018 financial results in early May.

Excluding Monday’s move, Celldex has underperformed the broad markets with its stock down 34% in the past 52 weeks. In just 2018 alone, the stock is down 24%.

Anthony Marucci, co-founder, president and CEO of Celldex, commented:

Triple-negative breast cancer is a very difficult disease to treat, and we are extremely disappointed for patients that the METRIC Study was not successful. On behalf of Celldex, I want to express our gratitude to the METRIC investigators, patients and families who participated in this study. Based on these results, we have also made the decision to discontinue the glembatumumab vedotin program across all indications and are currently prioritizing our pipeline, which includes five candidates in ongoing clinical studies. In line with this, we are evaluating our operational and workforce needs to extend our financial resources and direct them to continued pipeline advancement. Once we solidify these plans, we intend to update investors.

Shares of Celldex closed Friday at $2.15, with a consensus analyst price target of $7.67 and a 52-week trading range of $1.97 to $3.42. Following the announcement, the stock was down about 50% at $1.07 in early trading indications Monday.

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