Shares of Vion Pharmaceuticals dived 56 percent this morning after researchers announced that they were suspending a Phase III trial for Cloretazine, an experimental therapy for relapsed adult myelogenous leukemia. The company's data monitoring committee recommended the move after determining that mortality data in the study was likely to compromise any benefit the drug could deliver to patients. That was all investors needed to hear; they swiftly bailed out, sending the stock down $1.10 per share to 91 cents.
"There will be a thorough analysis of all the data to date from this trial, and we will base any decision on the continuation, possible modification or termination of the study on the available data," said Chief Executive Alan Kessman.
- here's the report on the trial fallout from TheStreet.com