Attention healthcare investors! On Friday, XBiotech Inc.’s (NASDAQ:$XBIT) stock plummeted 62% toward a record low. This drop occurred after the company said that an independent data monitoring committee (IDMC) had suggested the cessation of a Phase-3 trial for XBiotech’s colorectal cancer treatment. This was recommended because the treatment had failed to meet threshold requirements which would have granted them continuation. The stock was stopped for trading for news until 3:30 p.m eastern time.
According to the IDMC, there were no safety concerns, but the findings were not enough to meet efficacy endpoints. John Simard, who is XBiotech’s Chief Executive, said, “we are obviously disappointed with these findings. In the coming weeks, the company plans to analyze the data extensively to further understand the primary and secondary endpoint data, as well as to identify populations that may have benefited from the therapy.” He added, “these findings today will not affect our efforts to pursue approval of the therapy based on the successful completion of the European study, which demonstrated control of debilitating symptoms in colorectal cancer.”
It’s worthwhile noting that XBiotech’s stock has plunged 64% so far this year whereas iShares Nasdaq Biotechnology ETF (NASDAQ:$IBB) increased 11% and the S&P 500 index ($SPX) soared 8.5%. All in all, if you’re looking for healthcare stocks to invest in, you might want to leave XBiotech out of your portfolio.
Featured Image: Twitter
