Why CTI BioPharma Corp. Is Sinking Today

What happened

In response to the company sharing a clinical update, shares of CTI BioPharma (NASDAQ: CTIC), a clinical-stage biotech focused on blood-related cancers, fell 13% as of 12:05 p.m. EDT on Monday.

Continue Reading Below

So what

CTI Biopharma provided investors with an update on its PIX306 trial. This 312-patient phase 3 study was designed to evaluate its cancer drug Pixuvri in combination with Biogen's drug Rituximab, in comparison to Eli Lilly's drug Gemzar in combination with Rituximab as a treatment for non-Hodgkin lymphoma.

Unfortunately, the company stated that the study failed to meet its primary endpoint, which was an improvement in progression-free survival.

Here's what CTI BioPharma's CEO Adam Craig had to say about the results:

Given the disappointing news, it isn't hard to figure out why shares are tumbling today.

Now what

While downbeat clinical news is never good, CTI BioPharma's shares are not being mauled too badly today, because this company's primary pipeline asset is called Pacritinib. The company has high hopes for the experimental myelofibrosis drug and expects to report top-line clinical data from a phase 2 trial in the first quarter of 2019. If that data looks good, then today's setback will look insignificant by comparison. However, there's no doubt that CTI BioPharma is a high-risk stock with a checkered history. For that reason, I'm content to watch this story play out from the sidelines.

10 stocks we like better than CTI BioPharmaWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and CTI BioPharma wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of June 4, 2018

Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Biogen. The Motley Fool has a disclosure policy.