Infinity Pharmaceuticals Inc. (NASDAQ:INFI) shares were unceremoniously dumped on Tuesday after the biotech said its lead drug duvelisib hit the primary endpoint in a Phase II study for indolent non-Hodgkin lymphoma but fell short of expectations.
The company has been forced to pause work on a combo with AbbVie (NYSE:ABBV) and shutter its discovery efforts to save cash.
The latest crisis for the Cambridge, MA-based biotech firm comes three years after the company was forced to restructure in the wake of its then failed flagship drug.
The latest setback is also spurring a re-think of the collaboration between AbbVie and Infinity. The partners are pausing an AbbVie-run Phase Ib/II study pairing duvelisib with venetoclax as they “explore next steps for the parties' collaboration.” And Infinity is also jerking its financial guidance as it regroups.
Investors voted with their feet as more than 17 mln shares changed hands on Tuesday, versus a 50-day average of 422,000 shares.
Infinity shares were anything but, falling 70% to $1.32, a record low. AbbVie shares were down 0.03% at $59.91.