The stock shed 64% to trade at US$0.78 in early afternoon trading.
The company reported that its drug candidate -- glembatumumab vedotin known as glemba -- which was taken by patients with metastatic triple-negative breast cancer -- did not meet its primary end point of improving progression-free survival in its phase 2b clinical trial. Celldex also said that there is no advantage for glemba in key secondary endpoints.
The biopharmaceutical firm plans to discontinue its glemba program and it is shaking up its pipeline, which consists of five drug candidates that are involved in ongoing clinical studies.
“Triple-negative breat cancer is a very difficult disease to treat, and we are extremely disappointed for patients that the METRIC study was not successful,” said Anthony Marucci, the co-founder and chief executive officer of Celldex. “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.”