VBL Therapeutics Shares Drop Following Failed GLOBE Phase 3 Trial Results

VBL (NASDAQ:VBLT)’s hit a rough patch this week after the company announced its GLOBE Phase 3 trial failed to meet primary endpoints on Thursday (March 8).

The purpose of the Phase 3 GLOBE study was to evaluate VB-111 in combination with bevacizumab (Avastin) against bevacizumab control arm in patients with recurrent Glioblastoma (rGBM). It’s the most aggressive form of primary brain tumours and had about 13,000 new diagnoses last year in the US. rGBM is traditionally treated with surgery, chemotherapy and radiation.

VBL’s VB-111 is a targeted anti-cancer gene-based biologic agent developed to potentially treat a wide range of solid tumors. It’s also the company’s lead oncology product candidate.

The study had over 250 patients and was completed in January of this year.

“We are disappointed that our encouraging Phase 2 data were not replicated in the GLOBE Phase 3 study, and once we receive the full and final data we will be analyzing them carefully to better understand the outcome of the study,” Dror Harats CEO of VBL Therapeutics said in the release. VBL is a clinical stage biopharmaceutical company focused on cancer treatments. 

In June, the company announced positive long-term survival rates for rGBM. “In the Phase 2 study in rGBM patients, 12 months survival was 54 percent in patients who were treated with VB-111 through progression compared to 23 percent of patients who had limited exposure of a therapeutic dose of VB-111” the press release said.

Investor Takeaway

On Wednesday (March 7), a day before the news was released, VBL’s share price closed at $6.80. As of market close Thursday VBL’s stock price dropped 61.03 percent to $2.65. The company currently has a market cap of $70.10 million.

TipRanks shows three analysts downgraded their position from “buy” to “hold” from the news. Piper Jaffray analyst Charles Duncan gave the stock price a target of $4.00, from $13.00. He said VB-111 could be more successful in the “relatively lower bar of ovarian cancer.”

Another Phase 3 trial with VB-111 is taking place for ovarian cancer and two Phase 2 trials for thyroid and lung cancer. The variety of indications for the candidate means just because it wasn’t successful with rGBM, doesn’t mean the other trials will have the same result.

Investors should follow VBL’s news updates for any positive news updates on its other trials in progress.

Don’t forget to follow @INN_LifeScience for real-time updates!

Securities Disclosure: I, Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.