odonate-therapeutics-stock-plummets-toward-record-low-after-plan-to-‘wind-down’-operations

Odonate Therapeutics stock plummets toward record low after plan to ‘wind down’ operations

Business

Shares of Odonate Therapeutics Inc. ODT, -79.14% plummeted 79.0% in active afternoon trading Monday, after the pharmaceutical company said it will wind down operations following disappointing data from its cancer treatment. The company said it determined, following feedback from the Food and Drug Administration in a pre-New Drug Application (pre-NDA) meeting, that tesetaxel, an orally administered chemotherapy agent, is unlikely to receive FDA approval. “Therefore, the company is discontinuing the development of tesetaxel and will wind down the operations of the company,” the company said in a statement. Since going public in December 2017 at an initial public offering price of $24, the stock has traded in a closing price range of $11.78 (Dec. 27, 2018) to $45.63 (June 16, 2020); on Friday, the stock closed at $19.03. The stock has lost 73.9% over the past three months, while the S&P 500 SPX, +1.04% has gained 7.0%.