Synavive data sends CombinatoRx to all-time lows

Shares of CombinatoRx Inc. of Cambridge crashed to an all-time low today after the biotech company said its lead drug candidate missed its main goal in a clinical trial.

Analysts said the company will probably stop development of Synavive after tests showed the drug was not much more effective than a placebo or a common steroid in reducing knee pain caused by osteoarthritis. Synavive is the company's most advanced drug, and combined an agent called dipyridamole with the steroid prednisolone.

In afternoon trading, CombinatoRx stock lost $2.22, or 74 percent, to 78 cents per share, and fell as low as 56 cents on the Nasdaq Stock Market. The shares began trading in November 2005 and had never fallen below $2.86.

Analyst Edward Tenthoff of Piper Jaffray downgraded CombinatoRx stock to "Neutral" from "Buy" on the news, and cut his price target to $1 per share from $7. He said the results were "confusing," and he does not think the company will continue to develop the drug.

Cowen and Co. analyst Eric Schmidt agreed that CombinatoRx will probably stop development of Synavive after reviewing the full trial results. But the analyst said the company has some promising drug candidates in its pipeline, although they are in the early stages of development.

Those drugs include a "next-generation" version of Synavive, which Tenthoff said is designed to allow for greater dosing. The company is also developing dermatology and cancer drugs, along with a treatment for type 2 diabetes.

He rates the stock "Outperform." (AP)