H.C. Wainwright downgraded Rexahn Pharmaceuticals (NASDAQ:REXN) to “neutral” from “buy” and slashed its price target to $3 from $23 after a disappointing update from the company’s Phase 2a pancreatic cancer study.
Shares of Rexahn dropped $2.33, or 47%, to close at $2.60 on Aug. 7.
In January 2019, Rexahn reported a 38% overall response rate (ORR) in 24 patients, combining its RX-3117 with Abraxane in first-line pancreatic cancer, writes analyst Joseph Pantginis, adding that the data have not held up.
As of July 24, and 40 patients enrolled, the ORR is 23% and median progression-free survival is 5.4 months, which essentially matches the data on the Abraxane plus gemcitabine label for the indication, he said. Full data are expected in 2020.
“Unfortunately, the evolution of the study did not deliver based on two primary factors: continued difficulties of pancreatic cancer and potential development perils of uncontrolled studies’ data evolution over time,” he added.
Mr. Pantginis said Rexahn now must determine the “potential path forward for RX-3117 beyond pancreatic cancer.” Much of the decision for the next step appears to rest on China partner, BioSense Global, he added.
Both companies are in discussions and the pancreatic news does not necessarily bode well for continuation of the partnership, Mr. Pantginis said. “However, BioSense made it quite clear in signing the partnership in the first place, that it is interested in multiple indication development.”
