Market Overview

Nanocap Biotech Tracon Falls 50% After Shelving Study

Nanocap Biotech Tracon Falls 50% After Shelving Study

TRACON Pharmaceuticals Inc (NASDAQ: TCON), a thinly traded nanocap biotech, is plunging Friday after it announced shelving of a study of a pipeline asset.

What Happened

TRACON, which develops novel targeted therapeutics for cancer and wet age-related macular degeneration, with the latter through its license to Santen, said it terminated a late-stage study dubbed TAPPAS, of TRC105 in combination with Votrient in patients with advanced or metastatic angiosarcoma.

The decision to terminate the study was due to futility, based on the recommendation by the Independent Data Monitoring Committee, which had reviewed the interim unblinded safety and efficacy data. The trial had enrolled 120 patients.

What Next

Following the termination of the study, the company will now support its partner Santen in developing DE-122 in wet AMD. The company will also continue developing other candidates, including TRC253 in partnership with Johnson & Johnson (NYSE: JNJ)'s Janssen unit, and TJ004309, or TJ-D5 in partnership with I-Mab.

Due to the expected savings from the termination of the TRACON-sponsored trials of TRC105, the company said it expects current cash runway will now extend into the third quarter of 2020.

TRACON's stock was  down more than 50 percent to 66 cents per sharre.

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