GTx Inc., a drugmaker that recorded no revenue last year, plunged the most ever after the company said an experimental treatment failed to meet its goals in studies to combat muscle-wasting in lung-cancer patients.
GTx fell 66 percent to $1.43 at the close of New York trading, in its biggest one-day decline since an initial public offering in 2004. The Memphis, Tennessee-based company said today that its drug candidate, enobosarm, fell short of targets in two clinical trials.
The drugmaker said it plans to contact U.S. and European regulators to discuss “the path forward” for enobosarm. While failing to meet its primary goals in the studies, the drug did have an impact on lean-body mass compared with patients who received a placebo, GTx said in a statement.
“We are encouraged by the unambiguous effect of enobosarm on muscle and we are confident that it will translate to clinical benefit and potentially increase survival in patients with non-small cell lung cancer,” said Mitchell Steiner, the company’s chief executive officer.
GTx shares have fallen 66 percent so far this year in New York trading.