Why Repros Therapeutics Shares Got Slaughtered
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of clinical-stage biotech company Repros Therapeutics were mauled today, losing as much as 36% at one point, following an update to its top-line data announcement for Androxal, its secondary hypogonadism treatment.
So what: Wall Street had been expecting Repros to report its top-line, late-state finding on Androxal by the second quarter of this year. Today's news announcement pushed that data back a full quarter -- although, assuming the data is favorable, Repros sees its new drug application filing unchanged and on pace for mid-2014. The real concern/problem (call it what you will), is that Repros' study noted one site of patients was markedly different from the other 16 sites when reviewing the data. This site, which holds 40 of the 151 patients, indicated results that were as good if not better than the other 16 sites -- which begs the question of whether this is a special population, to be treated differently, or if it's still considered part of the general population.
Now what: For lack of a better term, I'd call this a "hitch in Repros giddy-up!" In true Murphy's Law fashion, the exception just had to be in what looks like one of Repros' largest study groups, and its success could undermine the effectiveness of the drug to the general population if this subgroup is determined to be special. With so many monkey wrenches now being thrown into the equation I don't think you can do anything except wait patiently for the final data in the third-quarter. In the meantime, I'm throwing Repros in the penalty box!
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