Chimerix Ditched Its Ebola Treatment To Focus On Cytomegalovirus...And It Just Whiffed Phase 3 Trials

shares are down more than 77 percent on Monday morning after the company issued a press release revealed it has missed primary endpoint on its Phase 3 trial of brincidofovir for patients with cytomegalovirus (CMV) infection. Brincidofovir has been in development for several years, and received FDA Fast Track designation for CMV, smallpox and adenovirus in 2014. The drug became known for its use as an experimental Ebola treatment last year, but Chimerix ultimately opted to end those tests to focus on other diseases, including CMV. According to Chimerix, its latest Phase 3 trial of brincidofovir was consistent with positive Phase 2 results in the first 14 weeks of the study. "However, during the 10 weeks off treatment from Week 14 to Week 24, there was an increase in CMV infections in the brincidofovir arm compared to the control arm," the company warned. Michelle Berrey, the President and CEO of Chimerix, echoed this sentiment. ""While we are clearly disappointed in the top-line results from SUPPRESS, we remain committed to better understanding the full data set as we consider potential paths forward for brincidofovir," she said. Berrey also gave some forward-looking statements, and highlighted the company's financials: "With a strong cash position, an experienced leadership team, and brincidofovir patent exclusivity through 2034, we continue to believe there is a viable path forward for the development of brincidofovir." After closing the holiday-shortened week above $35 per share, Chimerix now trades near the $8 mark. The company went public in April 2013 at an initial price of $14 per share. Morgan Stanley downgraded Chimerix in October to Equal-weight, while Janney Capital initiated coverage of the stock at Neutral in early December.