ChemoCentryx Inc (NASDAQ:CCXI) goes alone with CCR9 inhibitor trails


Dallas, Texas 10/08/2013 (Financialstrend) – On September 18, ChemoCentryx Inc (NASDAQ:CCXI) announced that GlaxoSmithKline has surrendered its acquired rights in one CCXI lead drug compound “vercirnon”. The compound had been developed by the drug firm as a “CCR9 inhibitor. The pharma giant has decided to terminate with immediate effect the three track clinical trials it had initiated to test CCXI compound.

CCXI has tried to take the set back in its stride and has announced that it plans to take the drug through the FDA approval process and market it on its own. The development stage biotechnology company has  a market cap of $217 million with accumulated losses of $39 million. It had recorded annual sales of $7.1 million over the previous 12 months trailing period. It sales has gone up close to 72% over its previous quarter.

The stock has been struggling since the  GlaxoSmithKline rejection announcement. It has shed close to 36% of its market value over the past 30 days and by close to 53% over the previous 12 months.

At close of business on October 7, the share price had settled a $5.27, translating to a 2.59% dip over its previous day close price. This last trading session drop took the share price down to new 52 week low pricing. The stock is already down 64% from its 52 week high valuation of $14.9 it had reached earlier in the year. Also almost 825,000 shares of the stock changed hands during the trading session on October 7, which is double its daily average trading band of 389000 shares.

Insiders own close to 5.3% of the total outstanding shares of 41.3 million. Analysts have set a target price of $10 for this downcast stock over the next 12 months. With the global rights of its most potential target drug back in its portfolio, it would be interesting to see how the company leverages its resources to take the drug to market.