Irvine drug maker IDM Pharma Inc., which saw a big runup in its stock last month, gave back a big part of the gain Wednesday after regulators recommended against approving its bone cancer drug.
IDM saw its shares close down 30% after a Food and Drug Administration panel recommended against approving Junovan, its bone cancer drug.
The company saw a stock spike in early April, rising 167% after news that the drug maker was going to meet with regulators.
IDM, a development stage company, counts a market value of about $50 million.
The regulatory panel said that results of a third-phase clinical trial don’t show substantial evidence that Junovan is effective in treating patients receiving combination chemotherapy.
The FDA typically follows the recommendations of its advisory committees when reviewing drugs for approval.
IDM Pharma, in a statement, said it expects a decision in August. Trading was halted prior to the announcement.
