Genmab shares plunge 30% as zalutumumab fails in Ph III study of refractory head and neck cancer patients

Denmark's Genmab A/S, which has already seen its stock fall 45% in the last five months, plunged as much as 30% yesterday, settling down 20.4% at 73.50 Danish kroner, after the company revealed that a Phase III trial of its zalutumumab had failed to improve survival in patients with refractory head and neck cancer.

The drug was out-licensed to the USA's TenX Biopharma last month, which gave the Danish firm an upfront $4.5 million and prospects of milestones and future sales royalties. Analysts had hoped that the most recent trial would deliver positive results, restoring confidence in the company, noted the UK's Financial Times. Instead they questioned Genmab's financial position, saying the group was less likely to find a buyer for its US manufacturing facility which it put up for sale in October.

Study details