Cell Genesys shares plummet on patient deaths

Source: Healthcare Digital

Date :8/27/2008 4:15:25 AM

Cell Genesys Inc shares crashed 70 percent before the bell on Tuesday, August 26, after 20 more deaths were reported following a late-stage trial of its prostate cancer therapy.

Shares were trading at 85 cents before the bell. They closed at US$2.80 Tuesday on the Nasdaq.

The biotechnology company said the cause for the "imbalance in deaths" had not yet been identified.

"We are currently notifying all participating clinical trial sites and regulatory agencies that enrollment of new patients into VITAL-2 has been suspended as has treatment with GVAX immunotherapy for prostate cancer of patients enrolled in the study," Cell Genesys’ CEO Stephen Sherwin said.

GVAX immunotherapy was being tested in two late-stage trials, coded VITAL-1 and

VITAL-2 enrolled 408 patients and recorded 114 deaths: 67 were in the treatment arm and 47 in the control arm.