Wilex AG (WL6) fell the most since the company began trading in Frankfurt after its experimental Rencarex treatment failed to meet the primary goal of a late- stage clinical trial for patients with a type of kidney cancer.
Wilex fell 62 percent to 1.50 euros by the close of trading. It was the biggest decline since the shares began trading in November 2006, and gave the company a market value of 46.9 million euros ($61.2 million).
Rencarex for clear cell renal cell carcinoma was the Munich-based biotech’s most advanced product and the stock will probably face more negative pressure tomorrow, Edouard Aubery, an analyst with Equinet Bank AG, said in an interview.
“There was quite a lot of hope here and it was 50 percent of my fair valuation for the stock,” Aubery said. “Without a doubt, the product missed its primary endpoint. Unfortunately from my point of view, there’s no hope for Rencarex in that indication.”
The drug failed to improve the disease-free survival rate beyond an average six-year span compared with a placebo, Wilex said in a statement today. An independent data monitoring committee recommended that the late-stage trial, called ARISER, be terminated.
The company will hold a conference call with media, investors and analysts at 3 p.m. tomorrow.
Wilex will continue to develop its diagnostic antibody Redectane for the same type of kidney cancer, the company said.