Why Is ContraFect (CFRX) Stock Down 80% Today?

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The medical panel monitoring a Phase 3 trial of ContraFect’s (NASDAQ:CFRX) treatment for antibiotic-resistant infections has stopped the trial after an “interim futility analysis,” the company announced yesterday. The analysis showed 84 patients’ response to ContraFect’s drug, exebacase, did not meet the necessary criteria to show the treatment may be worthwhile. In early trading, CFRX stock tumbled 80% to about 55 cents.

The ContraFect Trial

The 84 patients constituted about 60% of the trial participants with methicillin-resistant Staphylococcus aureus (MRSA). The patients in the evaluation also suffered from bacteremia, including right-sided endocarditis. Bacteremia is “the presence of viable bacteria in the circulating blood,” while endocarditis is “a life-threatening inflammation of the inner lining of the heart’s chambers and valves.”

ContraFect stated that, although it was evaluating the data from the trial, it would cease adding new patients to the evaluation.

“This disappointing news reflects the long history of difficulties in treating life-threatening infections like MRSA bacteremia in patients with heterogeneous co-morbidities, and who are in need of immediate life-saving treatments,” said ContraFect CEO Roger J. Pomerantz, M.D., in a statement.

What Is CFRX Stock?

Aside from exebacase, it does not appear, based on an examination of ContraFect’s website, that the company has any other drug candidates that are currently undergoing clinical trials.

ContraFect develops “biologic therapies for life-threatening, drug-resistant infectious diseases, particularly those treated in hospital settings.” It reports that “an estimated 700,000 deaths worldwide each year are attributed to antimicrobial-resistant infections.”

Based in New York, ContraFect was incorporated in 2008. CFRX stock now has a market capitalization of just $20.7 million, and its shares have tumbled 80% so far this year.

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On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.