The share price of ODT slumped around 80% on Monday, March 22, 2021, and the negative trend continuous in Tuesday`s Pre-market after the company announced to shut down its operations on Monday.
FDA told the ODT that Tesetaxel isunlikely to receive FDA approval, which forced the company to discontinue the development of tesetaxel.
The news took the stock price to rock bottom and it lost almost 90% of its value in two days. As of this writing, ODT stock has lost a further 8.08% in Tuesday’s pre-market session.
the ODT went public in December 2017 at $24 per share. it went down to $11.78 per share on Dec. 27, 2018, and it climbed up to $45.63 per share on June 16, 2020, but yesterday stock closed at $3.96 per share.
Tesetaxel is an investigational, orally administered chemotherapy agent that belongs to a class of drugs known as taxanes, which are widely used in the treatment of cancer.
Recent Financial Results
On February 23 2021, ODT announced financial results for the three and twelve months ended December 31, 2020.
- Odonate had $157.3 million in cash by the end of 31 December 31, 2020,compared to $180.5 million as of December 31, 2019
- Odonate suffered a net loss of $32.3 millionor $0.87 per share for the reported quarter, compared with $27.9 million or $0.91 per share for the same quarter in 2019
- Its net loss was $126.4 million or $3.84 per sharefor the twelve months ended December 31, 2020.
Conclusion: Clearly, the FDA results about Tesetaxel is a huge set back for the company and it will be very hard for ODT to recover itself from such a low level. The revival of ODT will take a long time.