Threshold Pharmaceuticals saw its stock go into free fall soon after the FDA suspended a late stage clinical trial of its experimental prostate drug after several subjects experienced liver damage. Threshold stock nosedived close to 75 percent on the news, dropping to $3.58 in overnight trading. Researchers reported "three serious adverse events" in the trial of TH-070 involving liver enzyme levels. In a partial clinical hold, researchers will stop dosing the more than 500 subjects signed up in Europe and Canada. Data from the Phase III trial along with results from a Phase II U.S. study will be examined to help determine how the drug proceeds from here. As of March 31, Redwood City, CA-based Threshold had $87.4 million in cash and securities on hand.
"Under the partial clinical hold the current Phase II trial will continue to completion," the company said in a statement. "The human pharmacokinetic trial, already underway, will continue. The radical prostatectomy trial, planned to start this year, has been withdrawn by the company and will not be initiated as was planned."
- here's the AP report on Threshold