Celldex Nearly Back To Square One

Once again Celldex (CLDX) shareholders have had to come to terms with a major disappointment. Following the spring 2016 announcement that the company's lead drug Rintega had failed in Phase III, Celldex announced earlier this week that its pivotal METRIC study of glembatumumab (or "glemba") failed to show clinical benefit in the treatment of triple-negative breast cancer.

With these failures, as well as the lackluster results seen in other glemba studies and in studies of varlilumab (or "varli"), I believe Celldex is almost back to square one as a biotech, with a handful of unproven Phase I assets. Given the significant development timelines Celldex is looking at, as well as the high likelihood of future dilutive financing, it looks like a difficult road ahead for these shares. While today's price arguably does understate the potential of Celldex's remaining pipeline, only the most aggressive investors should really even consider dumpster-diving for this name.

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Celldex Nearly Back To Square One