Poniard Pharma Loses Its Wings (PARD)

Posted in Options, pre-market 
November 16th, 2009

Poniard Pharmaceuticals, Inc. (NASDAQ: PARD) is getting crushed.  The company announced that its pivotal Phase 3 SPEAR trial of picoplatin in the second-line treatment of small cell lung cancer failed to meet its primary endpoint of overall survival. The analysis was based on 320 patient deaths, and it showed a hazard ratio of 0.82 with a p value of 0.089.  Shares closed at $7.58 on Friday and options open interest had been very high.

UPDATE at 8:43 AM EST: 3.8 million shares have now traded and shares are down 77% at $1.72.  Volume is already exponential.

This morning we have shares down at $1.61.  It is not even 8:00 AM EST and the volume at 7:48 AM EST is 641,000 shares versus 735,000 shares on average.  This ~80% does actually not even take Poniard to a 52-week low as the 52-week trading range is $1.05 to $9.14.  Options trading will be very active as there were over 50,000 contracts in the open interest for the NOV-2009 CALLS alone.


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