Infinity Pharmaceuticals (NASDAQ: INFI)
Infinity Pharmaceuticals News & Technicals
On Tuesday morning before the market opened, Infinity Pharmaceuticals announced that they will be restructuring the company which will reduce the workforce by 21% after the company experienced a disappointing Phase 2 drug-study. The study did meet its endpoint but the company was hoping for a larger clinical benefit and with these results they will be closing down their discovery research organization including about 46 positions. Currently analysts have an average price target of $12.50 but that will most likely come down over the next few days. (MarketWatch)
Looking at the chart you will see that shares have been in a nasty downtrend dating back to March of last year and have consistently followed the 50-day moving average that is currently sitting at $5.52. Shares are looking to gap down to all-time lows with premarket lows currently trading at $1.27 after closing Monday at $4.41 equaling a 71% drop in value. We should see some support around the whole dollar values while resistance will be met at $4.38 and $4.50 followed by the 200-day moving average currently sitting at $7.09. Shares should be more volatile than normal as traders look to take advantage of this big move so keep an eye on this one for possible intra-day opportunities.
“While the DYNAMO study met its primary endpoint, we hoped that treatment with duvelisib as a monotherapy would have provided a larger clinical benefit for patients with advanced indolent non-Hodgkin lymphoma, a difficult-to-treat disease,” stated Adelene Perkins, president and chief executive officer at Infinity. “We plan to seek feedback from the U.S. Food and Drug Administration to determine our next steps with respect to duvelisib in indolent non-Hodgkin lymphoma.”
“This restructuring is a necessary step to preserve financial resources as we explore options for duvelisib and the advancement of IPI-549, our second clinical program,” stated Adelene Perkins, president and chief executive officer. “These were very difficult decisions that were undertaken, and I would like to personally express my deep appreciation to the very talented and dedicated Citizen-Owners impacted by the restructuring for their tremendous contributions to Infinity.”
Infinity Pharmaceuticals, Inc., a drug discovery and development company, discovers, develops, and delivers medicines to patients with difficult-to-treat diseases. Its lead product candidate includes IPI-145, an oral inhibitor of the delta and gamma isoforms of phosphoinositide-3-kinase (PI3K) for the treatment of hematologic malignancies. The company is developing DYNAMO, which is in Phase II study to evaluate the safety and efficacy of IPI-145 dosed at 25 mg; CONTEMPO that is in the Phase Ib/II study of IPI-145 in combination with obinutuzumab or rituximab in patients with untreated follicular lymphoma; BRAVURA, which is in Phase III study to evaluate the safety and efficacy of IPI-145 plus rituximab and bendamustine; and FRESCO that is in Phase II study to evaluate the safety and efficacy of IPI-145 plus rituximab. It is also developing DYNAMO+R, which is in Phase III randomized study to evaluate IPI-145 dosed at 25 mg in combination with rituximab, a monoclonal antibody treatment; DUO that is in randomized Phase III monotherapy study evaluating IPI-145 dosed at 25 mg in patients with relapsed or refractory chronic lymphocytic leukemia (CLL); and SYNCHRONY, which is in the Phase Ib study of IPI-145 in combination with obinutuzumab in CLL patients. In addition, the company is conducting a Phase Ib/II trial of IPI-145 in combination with venetoclax, a B-cell lymphoma 2 inhibitor; and developing IPI-549 that is in Phase I study for patients with various solid tumors, including melanoma and non-small cell lung cancer. The company has collaboration and license agreement with AbbVie Inc. to develop and commercialize IPI-145 in oncology; and development and license agreement with Intellikine, Inc. to discover, develop, and commercialize pharmaceutical products targeting the delta and/or gamma isoforms of PI3K. Infinity Pharmaceuticals, Inc. is headquartered in Cambridge, Massachusetts. (YahooFinance)