On its website, Celladon Corp. (NASDAQ: CLDN) writes “Hope to Heart Patients.” Not to sound morbid, but the company appears to have lost at least some hope – in terms of dollars – when it announced negative results in its Cupid2 trial of Mydicar for treatment of advanced heart failure.
This announcement was followed by a near cataclysmic 80% drop in its stock price.
As for the study, Cupid2 is a Phase 2b trial evaluating a single intracoronary infusion of the cardiovascular gene therapy agent Mydicar. In the study, there were 250 adult patients who had stable New York Heart Association class II to IV ischemic or non-ischemic heart failure despite optimal therapy, reduced left ventricular ejection fraction and a high risk for recurrent heart-failure hospitalizations.
The study enrolled only patients with heart failure with reduced ejection fraction. The statistical analysis for the primary endpoint was performed on the modified intent to treat population, which comprised all patients who, after randomization, underwent cardiac catheterization and drug or placebo administration.
ALSO READ: 4 Biotech and Pharma Stocks Projected to Rise 50% to 100%
Krisztina Zsebo, Ph.D., CEO of Celladon commented on the trial:
We are surprised and very disappointed that MYDICAR failed to meet the endpoints in the CUPID2 trial, and we are rigorously analyzing the data in an attempt to better understand the observed outcome. We would like to express our sincere gratitude to our investigators and patients who participated in the study. At the same time we are evaluating our other programs in order to determine the best path forward to maximize shareholder value.
Prior to the announcement, a couple analysts had relatively positive outlooks for Celladon:
- BMO Capital markets initiated coverage with a Market Perform rating with a $15 price target.
- H.C. Wainright initiated coverage with a Buy rating and $31 price target.
Following the announcement a couple other analysts had something to say too:
- Wedbush downgraded Celladon to a Neutral rating and lowered its price target to $3 from $29.
- Roth Capital downgraded the company to a Neutral rating.
Shares of Celladon were down about 80% at $2.80 Monday morning, in a 52-week trading range of $2.76 to $28.25. The stock has a consensus analyst price target of $32.17.
ALSO READ: 5 Biotechs Not Keeping Up With the Hot Sector in 2015
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
