Burlington, MA-based Coronado Biosciences (CNDO) plummeted over 65 percent in trading early on Monday. The culprit for the radical sell-off in shares of the small cap biopharmaceutical company were negative results for the Phase II clinical trial of its experimental drug TSO (Trichuris suis ova or CNDO-201).
Treatment for Crohn’s Disease Comes up Short
Coronado’s TSO was meant to treat Crohn’s disease by having patients ingest the eggs of a parasite found in the excrement of pigs. The intent was for the porcine parasites to hatch into tiny whipworms and stimulate the immune system to fight inflammatory auto-immune diseases like Crohn’s. Unfortunately for Coronado, the results from their clinical trial didn’t demonstrate the treatment to be as effective as had been hoped for. The trial included 250 patients, and showed that those taking TSO were no more likely to experience regression in their Crohn’s than those taking a placebo.
"While we are disappointed with the topline results, we are encouraged to see TSO's effect in patients with CDAI > 290. These results support the potential of TSO to regulate the immune system in patients with Crohn's disease, particularly those with higher level of disease severity," said chairman and CEO Dr. Harlan F. Weisman. "We look forward to further analyzing the data from TRUST-I, along with the anticipated data from Dr. Falk Pharma's TRUST-II study in Crohn's disease, to identify the most appropriate development path for TSO."
Stock Plunges, Trouble for Coronado
Coronado’s failure to show results for treating Crohn’s Disease is problematic for the company. The market for drugs treating Crohn’s is estimated to reach $4.5 billion by 2020 according to Decision Resources. The only other drug in Coronado’s pipeline is CNDO-109, lysate intended for use as a leukemia treatment. The massive selloff means Coronago’s market cap has dropped all the way below $70 million and the current share price is nearly 85 percent off from its 52-week high on April 23.
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