Cytori Tanks on Unfavorable Data from Osteoarthritis Study

Cytori Therapeutics, Inc. CYTX shares plunged 21.9% to a new 52-week low after the company announced unfavorable top-line interim data from a phase II ACT-OA study on the candidate, ECCO-50, for the treatment of patients with osteoarthritis of the knee.

This randomized, double-blind, placebo controlled phase II study evaluated the safety and feasibility of a single intra-articular knee injection of ECCO-50 at 48 weeks, in patients with chronic knee pain due to osteoarthritis.

Data revealed that the study has failed to meet the pre-specified primary endpoint, which included pain on walking at 12 weeks. Cytori expects to present full data from the study in the third quarter of the year.

Meanwhile, Cytori is evaluating ECCS-50 in the phase III STAR and the SCLERADEC-II studies for the treatment of patients with impaired hand function from scleroderma. Patient enrolment in both studies is expected to be complete by mid-2016.

Cytori is also enrolling patients in the phase III ADRESU study for the treatment of patients with stress urinary incontinence, and in a phase II study for the treatment of fistula-in-ano associated with Crohn's disease. The company expects to finish patient enrollment in the ADRESU study in 2017.

With no approved drugs in its portfolio yet, we expect investors to focus on further pipeline updates on the company's candidates.

Cytori currently carries a Zacks Rank #2 (Buy). Other favorably ranked stocks in the health care sector include Horizon Pharma plc HZNP, Anika Therapeutics Inc. ANIK and Ligand Pharmaceuticals Incorporated LGND, each sporting a Zacks Rank #1 (Strong Buy).

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