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Why is Aduro Biotech (ADRO) Stock Crashing Today?

On Monday, shares of Aduro Biotech, Inc. ADRO, an immunotherapy company that develops vaccines and other treatments for cancer, are crashing, down almost 25% in mid-morning trading following negative results reported in its mid-stage ECLIPSE trial.

Aduro said that the Phase 2b ECLIPSE trial did not meet the anticipated endpoint of improvement in patients’ overall survival with pancreatic cancer; these patients had failed at least two previous therapies in the metastatic setting.

Overall survival was the ultimate goal in Aduro’s ECLIPSE trial, while secondary endpoints included the evaluation of clinical and immune response and safety. The average overall survival in this third-line and greater setting was 3.8 months for patients treated with the immunotherapy regimen of CRS-207 and GVAX Pancreas; 5.4 months for patients treated with CRS-207 alone; and 4.6 months for patients administered chemotherapy.

Chairman, president, and CEO of Aduro Stephen T. Isaacs said that “This is an unexpected outcome, and we are disappointed particularly for the pancreatic cancer patients who are in need of additional treatment options. While we are well aware of the very difficult-to-treat nature of late-stage metastatic pancreatic cancer, we are surprised by the divergence of these data from the results of our Phase 2a study.” 

Isaacs also said that Aduro is looking forward to interim results from its ongoing STELLAR trial, “which is evaluating CRS-207 and GVAX Pancreas with and without the anti-PD1 checkpoint inhibitor nivolumab as a second-line therapy for patients with metastatic pancreatic cancer.”

Prior to Monday’s move, ADRO is down over 60% so far this year, and has underperformed the broader markets. The company recently released first quarter fiscal 2016 results, posting a wider-than-expected loss as well as a decline in revenue.

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