SGX shares tank on late-stage trial failure

SGX Pharmaceuticals has abandoned a late-stage trial of Troxatyl, noting that the drug stood little chance of producing a benefit for patients with acute myeloid leukemia in the Phase II/III study. The San Diego-based company responded by noting that it hasn't given up on Troxatyl and plans to file a targeted IND for a drug candidate identified in collaboration with Novartis in the first half of next year for chronic, drug resistant myelogenous leukemia. Investors, however, weren't feeling optimistic, sending SGX shares down about 35 percent in overnight trading.

"Although we are disappointed with the results of Troxatyl in this very difficult to treat third-line AML population, Troxatyl has produced interesting clinical results in other indications and we remain optimistic for its potential in these other indications," President and Chief Executive Mike Grey said in a statement.

- here's the AP report on SGX
- see the release