Pharmacyclics shares plunge after Xcytrin flunks Phase III

Shares of Pharmacyclics cratered this morning after the company reported that Xcytrin failed a late-stage trial designed to slow the spread of non-small cell lung cancer to the brain. Its stock plunged 61 percent in early trading. Patients receiving Xcytrin with radiation therapy lived an average of 15.4 months compared to 10 months for patients receiving radiation alone. But those results were not considered statistically significant. Pharmacyclics said that it would continue to study the drug for lung cancer and will discuss the future of Xcytrin with the FDA.

- read this AP report for more information