Array Biopharma Inc., developing cancer drugs with AstraZeneca Plc, fell the most in four years on Nasdaq after a study showed its experimental melanoma drug didn’t slow cancer.
Array’s drug, AZD6244, was no more effective than chemotherapy in a mid-stage study against advanced melanoma, the company, based in Boulder, said in a statement yesterday. Two smaller studies of patients with colorectal cancer and lung cancer also failed, the company said.
A dozen analysts surveyed by Bloomberg continued to rate the stock “buy.” “We would remain buyers, especially if the stock breaks below $9 a share,” William Ho, an analyst at Banc of America, wrote to investors after reviewing yesterday’s cancer test results. “We continue to believe that Array possesses a strong drug-development platform and that the company represents a solid long-term investment in the biotechnology sector.” Array fell $3.01, or 27 percent, to $8.01 in composite trading at 10:51 a.m. New York time after dropping as low as $7.85, or 29 percent. It was the 11th-biggest decline among U.S. stocks today and Array’s worst day since tumbling 36 percent on April 1, 2003, after the company announced falling revenue.
Volume totaled 2.94 million shares, more than seven times the three-month daily average.
Array’s partner, London-based AstraZeneca, is “exploring other options to further develop this compound,” Array said in the statement.
