Shares of Immune Design Corp. IMDZ, -1.41% took a 42% dive toward a record low in premarket trade Friday, after the immunotherapy company said it discontinued its CMB305 cancer vaccine program. The company said late Thursday it made the design after an early analysis of a phase 2 study showed CMB305 combined with Tecentriq is not likely to show a survival benefit in relapsed synovial sarcoma patients. The company said it plans to focus on accelerating and expanding the development of its lymphoma therapy, G100. Leerink analyst Jonathan Chang cut his rating on Immune Design to market perform from outperform and slashed his price target on the stock (IMDZ) to $3 from $7. Chang wrote in a note to clients that while he views the decision to focus on G100 as a positive, “in the context of past disappointments that have pressured IMDZ shares, we believe this recent update could add to investor concerns on company execution, which has been a critical part of the IMDZ story.” The stock had lost 74% over the past 12 months, while the iShares Nasdaq Biotechnology ETF IBB, -2.00% has lost 2.9% and the S&P 500 SPX, -2.06% has gained 7.0%.
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