Shares of the clinical-stage biopharmaceutical company, Oncternal Therapeutics, (NASDAQ: ONCT) cratered in morning trading on Tuesday after the company announced a “strategic reprioritization” and halted two cancer studies. This included the Phase 3 study and the Phase 1 study of zilovertamab in combination with ibrutinib.
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The company also intends to reduce its indirect expenses to extend its expected cash runway into 2025. Oncternal expects the extended cash runway to support the clinical advancement of its two pipeline assets ONCT-808 and ONCT-534.
This announcement led to trading being halted for ONCT’s shares at 4:00 PM EST and was resumed at 4:30PM EST.
James Breitmeyer, M.D., Ph.D., Oncternal’s President and CEO commented, “The dramatic adoption of recently approved Bruton’s tyrosine kinase inhibitors made the continued development of zilovertamab with ibrutinib an unviable commercial opportunity. The decision was not based on any concerns about the safety or efficacy of zilovertamab.”
Analysts remain cautiously optimistic about ONCT stock with a Moderate Buy consensus rating based on two Buys and three Holds.
