a massive sell off, page-5

Highly-anticipated results from Sirtex Medical Limited‘s clinical trial for its specialised liver cancer treatment came out Tuesday. The preliminary analysis showed the primary endpoint of the SIRFLOX study was not achieved. However, it was shown the study’s secondary endpoint was achieved.
Sirtex Medical’s share price plummeted to as low as $14.80 in morning trade on Tuesday and is currently trading down 57.6% at $16.55.
The clinical trial hoped to show the company’s SIR-spheres treatment, which is currently a salvage therapy for liver cancer patients, might be suitable as a first-line treatment.
According to the company’s release: “Preliminary analysis shows that adding SIR-Spheres® Y-90 resin microspheres to a current first-line systemic chemotherapy regimen for the treatment of non-resectable metastatic colorectal cancer (mCRC) does not result in a statistically significant improvement in the overall Progression-Free Survival (PFS).”
High expectations for the company have been building over the past year, as the market waited for the clinical trial results. A year ago, the stock was trading at $15.78 and it last closed at $39.00.
All the while, the stock had a very high price/earnings ratio because more investors picked up the stock, expecting a huge expansion in Sirtex’s production levels. The company estimated it might have to triple current production to meet the potential demand if its cancer treatment became a first-line therapy.