Yahoo Finance Merck KGgA shares slide after failure of potential head and neck cancer drug
Investing.com -- Shares in Merck KGaA (ETR:MRCG) slumped by more than 10% on Tuesday after the drugmaker announced that it had discontinued a Phase III study evaluating its treatment for patients with head and neck cancer.
In a statement on Monday, Germany-based Merck KGgA said that interim analysts of the trial found that the drug, dubbed xevinapant, used in conjuction with chemoradiotherapy would be unlikely to meet its primary objective of "prolonging event-free survival."
"While we are disappointed by these results, we remain steadfast in our commitment to develop transformative medicines within our oncology portfolio for areas of high unmet need," said Global Head of Research&Development Danny Bar-Zohar.
Analysts at Stifel noted that xevinapant had already been viewed with "skepticism" by Wall Street observers due to "delays" to the release of the study's interim results. They added that questions over how Merck KGgA plans to "reinvigorate" research and development at its Healthcare business will likely now intensify, particularly after a separate experimental drug for multiple sclerosis missed its primary goal in a late-stage trial in December.
Analysts at UBS also said investors will be keen to see if Merck KGgA will pursue any new acquisitions in the wake of xevinapant's failure. Attention is also focused on how the company plans to maximize performance at its other two divisions, providing specialty chemicals for the electronics sector and supplies for the biotech industry.
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