Agenus drops after brokerages cut rating; FDA blocks cancer therapy accelerated approval

Agenus

19/07/2024 13:08

** Shares of cancer therapy developer Agenus Inc  AGEN.O 
fall 5.4% to $6.9 in premarket trade after falling as much as
~62% in previous session
    ** Co on Thursday said U.S. FDA advised against submission
of mid-stage trial results of its colorectal cancer therapy for
accelerated approval
    ** Said FDA views objective response rate of therapy may not
translate to survival benefit
    ** Brokerages H.C. Wainwright and William Blair cut ratings
on stock to "neutral" and "market perform", respectively
    ** "Given the unclear dose relationship observed in Phase 2
and that a Phase 3 would be required for approval, which likely
puts a potential launch back by multiple year" - H.C. Wainwright
    ** William Blair says while therapy should be viewed as
attractive asset for business development, lack of accelerated
approval pathway and limited balance sheet may result in
relinquishing greater long-term upside for AGEN 
    ** Three brokerages rate the stock "buy" or higher and two
"hold"; their median PT is $38.5 - LSEG
    ** As of last close, stock down 55.9% YTD while S&P 500
biotechnology index  .SPLRCTKBI  up 10.6% in same period

 (Reporting by Roshan Abraham)
 ((Roshan.Abraham@thomsonreuters.com))