Boston, MA 10/15/2013 (wallstreetpr) – Coronado Biosciences Inc (NASDAQ:CNDO)’s future seems to be uncertain as the Crohn’s disease trial was unsuccessful in meeting the aim of improving the patients’ response to the disease. The company, focused on the development of drugs for the treatment of cancer and autoimmune disease, stated that the trial did not meet its primary motive of improving patients’ response.
It is believed that the company will analyze data from the study that has been conducted in Trust I (which failed), and is also anticipating certain data from another trial (from its partner’s European study) in order to find out the most suitable development trail for TSO.
The Trust I failed to progress patient response or send Crohn’s into diminution any better than the placebo. The trial assessed total 250 patients’ , 125 each on TSO and 125 who took a placebo once every 2 weeks, for a period of 3 months. The company has undertaken a second study to understand the failure, the results of which are expected to come in the fourth quarter of the current calendar year.
It is believed that investing in biotech and pharmaceutical companies largely comes with a high risk and high reward profile. Since, if they are successful, returns are huge; but if there is an event like a failure of drugs, a single investment can wipe off the entire gain of the portfolio. Since the announcement, CNDO stock tumbled 70% on the back of the news as its future seems to be uncertain.
Going ahead, it seems that, the company has to deploy its entire efforts (workforce) and make effective use of research and development into its study for CNDO-109. CNDO-109 is another pipeline drug, which can be use for the treatment of solid tumors and acute myeloid leukemia. It is presumed that, with the failure of the Trust I, the company would have to spend additional capital in analysing the reason for the failure.
