Pharmaceutical company Incyte Corp. (INCY, Financial) announced on Friday that its skin cancer drug, in combination with Merck & Co. Inc. (MRK, Financial)'s Keytruda, failed to meet its primary objective in a late-stage study, sending shares of both companies lower.
The primary objective of the study, which was evaluating the effects of Incyte’s inhibitor, Epacadostat, and Keytruda in treating metastatic melanoma, was to determine if the drug combination would improve progression-free survival in the overall patient population compared to Keytruda alone. Keytruda is already approved for treating several forms of cancer, including lung cancer and advanced melanoma.
In addition, the company said it did not expect the drug to meet the study’s second primary endpoint, which was overall survival. Other key secondary endpoints included objective response rate, safety and tolerability.
As a result, Incyte and Merck are ending the study, which had enrolled over 700 patients.
In a statement, Incyte’s chief medical officer, Dr. Steven Stein, expressed his disappointment that the study was unsuccessful. He did note, however, they now have a better understanding of the drug’s abilities.
“We remain dedicated to transforming the treatment of cancer and will continue to explore how IDO1 inhibition and other novel mechanisms can potentially improve outcomes for patients in need,” he said.
According to the American Cancer Society, while skin cancer is the most common form of cancer, melanoma affects only 1% of those diagnosed. However, it is responsible for the largest number of skin cancer-related deaths.
Shares of Incyte fell nearly 20% to around $64.13 in Friday morning trading, while Merck declined 1.22% to $53.83.
Year to date, GuruFocus estimates Incyte has fallen 33% and Merck has lost 3%.
Disclosure: No positions.
