Tokai Pharmaceuticals Stock Plummets After Drug Trial Discontinued

Shares of Tokai Pharmaceuticals Inc. plummted 68% toward a record low in active premarket trade Tuesday, after the company said it was discontinuing a late-stage trial of its prostrate cancer treatment. volume of 257,000 shares was more than four-times the full-day average. The company said following a review of safety and efficacy data, it did not believe the phase 3 study of galeterone for the treatment of metastatic castration-resistant prostate cancer would meet its primary endpoint. "We are very disappointed by this outcome," said Chief Executive Jodie Morrison. "An immediate priority is to analyze the unblinded study data in detail as we evaluate potential paths forward for galeterone and our pipeline." Prior to the premarket selloff, the stock, which closed at its record high of $23.76 on the day it went public on Sept. 17, 2014, had tumbled 40% year to date.