Boston, MA 02/13/2014 (wallstreetpr) – Ventrus Biosciences Inc (NASDAQ:VTUS)’s treatment for anal fissures did not give better results than a placebo. The news saw the stock of the company losing more than 63% of its value in a day. The first phase 3 trial had shown better results but in the pivotal second phase 3 trial, the placebo effect in the control group gave better than expected results, though there was an improvement in patients using the company’s drug. In effect, the trial showed that there was no difference between Ventrus Biosciences, Inc. (NASDAQ:VTUS)’s drug and the placebo. The company is expected to approach the FDA for the way forward.
Lorillard Inc. (NYSE:LO) is finding it difficult to generate profits from sales of tobacco products. The fourth quarter results show that though revenues increased on account of higher sales of both traditional and electronic cigarettes, profits fell by 5% on account of higher costs. Companies are increasing prices and cutting costs to improve profit margins but the smoking bans, health concerns and tax increases are eating into both volumes as well as profits. Lorillard Inc. (NYSE:LO) saw volumes fall by 1.6% to 9.85 billion though the overall industry shrank by 6% according to the company’s estimate.
Generex Biotechnology Corporation (OTCMKTS:GNBT) is getting positive results from a novel cancer vaccine. The company is conducting phase 2 clinical trials for this novel cancer vaccine which is designed to prevent relapse in patients with prior history of breast cancer. The company plans to release the full results of the Phase 2 results during the American Society of Clinical Oncology (ASCO)’s Annual Meeting being held in early June. The stocks moved up by almost 13% on the back of this piece of good news. However, the drug still has to pass through the other critical phases before Generex Biotechnology Corporation (OTCMKTS:GNBT) can commercialize the treatment.
