Altus hits all-time low on Trizytek trial results
Shares of Altus Pharmaceuticals Inc. plunged to an all-time low today as Wall Street reacted negatively to preliminary results from a late stage trial of its Trizytek enzymes.
Late yesterday the Cambridge company said Trizytek significantly improved fat absorption for cystic fibrosis patients who suffer from pancreatic insufficiency, a condition that leaves them unable to properly absorb nutrients from food. However, the improvement was smaller than some analysts had expected, and Altus said patients in several countries did not experience any improvement compared to a placebo.
Cystic fibrosis is a genetic disease that causes serious lung infections and digestive difficulties.
In morning trading on the Nasdaq Stock Market, Altus shares dropped $2.34, or 47.4 percent, to $2.60 and set an all-time low of $2.12. The stock began trading in January 2006, and has ranged between $14.30 and $3.65 in the past year.
The primary goal of the trial was improvement in fat absorption, which was determined using a measurement called coefficient of fat absorption. On average, the CFA of patients taking Trizytek improved 36 percent, and patients taking a placebo improved only 4 percent. Patients with severe absorption problems improved by 80 percent, compared with a 24-percent improvement for patients given the placebo.
Altus said patients in the U.S. experienced stronger results. But the drug was also tested in six other countries, and in three of them, there was no difference between the Trizytek group and the placebo group. The drug is given as a capsule to be taken with meals and snacks.
Results for 138 patients were reported Monday, with 68 in the U.S. and 70 elsewhere.
Patients taking Trizytek also experienced better protein absorption, but carbohydrate absorption did not improve significantly.
Cowen & Co. analyst Eric Schmidt downgraded the stock to "Neutral" from "Outperform."
The improvement, he said, was not as strong as Altus management hoped. The average improvement in Trizytek patients compared to a placebo was 15.1 points, and management felt the Food and Drug Administration required a 30-point improvement.
The FDA might want more data on Trizytek before approving it for sale, he said.
Altus did not immediately return calls seeking comment. (AP)
