In what seemed like a promising biotech success story, investors are reminded again about the dangers of putting their money in development-stage drugmakers after GTx collapsed 65% following a failed late-stage drug trial.
The pivotal trial was for drug GTX-024, which prevents muscle mass from wasting away in lung cancer patients. The drug had nice market potential as a complementary therapy, and the FDA was interested enough to give it a fast-track designation, speeding up its approval process if its phase 3 trials went well.
In this video, health-care analyst David Williamson drills down on today's terrible news for GTx investors. Watch and find out why there was so much optimism around this drug and if, after the collapse, GTx makes for a bad-news buy.
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The article 1 Biotech Fast-Tracked to Failure originally appeared on Fool.com.
David Williamson owns shares of Johnson & Johnson. Follow David on Twitter: @MotleyDavid.The Motley Fool recommends Johnson & Johnson and owns shares of Dendreon and Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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