Shares of ARCA biopharma ($ABIO) briefly went on a tear yesterday after the Broomfield, CO-based biotech reported some impressive data based on follow-up analysis of some aging late-stage data on its cardio drug Gencaro. The stock initially soared after investors heard the drug triggered a 74% reduction in the risk of new onset atrial fibrillation for a big group of patients sharing a common genotype. But then the price quickly slid back to earth.
Gencaro has followed a long, twisting path in the pipeline. ARCA originally filed for an approval three years ago, only to have the FDA hand back the application with a demand for a new study. Then in the spring of 2010 they struck an SPA agreement for the study, but have yet to launch it as the biotech ponders how it can pay for the work.
ARCA has also had plenty of experience with a gyrating share price. Back in 2009 the FDA didn't just reject the application, regulators also questioned the integrity of the data, adding that the results did "not adequately demonstrate efficacy of Gencaro in reducing all-cause mortality in patients with heart failure." That news triggered a collapse in the share price.
- here's the press release
- get the Dow Jones report