Infinity Pharmaceuticals Stock Plunges Toward Record Low After Drug Study Disappoints

Shares of Infinity Pharmaceuticals Inc. plummeted 66% in premarket trade Tuesday, toward an all-time low, after the biotechnology company announced a restructuring that would reduce its workforce by 21% in the wake of disappointing drug-study results. While a Phase 2 study of its treatment for non-Hodgkin lymphoma met its primary endpoint of overall response rate, the company said it hoped it would provide a larger clinical benefit. RBC Capital analyst Michael Yee said the response rate of 46% was below the 54% response rate of a rival treatment from Gilead Sciences Inc. , which suffers from lackluster sales. Infinity said its restructuring will include closing down its discovery research organization, leading to a loss of 46 jobs. In addition, the company said it was holding discussions with AbbVie Inc. to explore the next steps for the companies' collaboration. Infinity's stock, which went public in July 2000 at an IPO price of $18, was trading around $1.55 ahead of the open; the previous all-time intraday low of $3.74 was hit in October 2008.