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The pharmaceutical industry is considered recession-resistant. Whatever the state of the economy, people still get sick.
The biotechnology sector has recently suffered a slump on the stock market. Notably, Ziopharm has seen its stock fall by 37 per cent this year, more than the general trend.
Ziopharm specialises in developing cancer treatments by using technology to target cells and control the immune system. The depth of pharmaceutical consulting used in clinical trials intends to result in new marketable treatments.
Clinical studies by the company concentrate on the immune response to cancer. The most advanced trial focuses on developing treatments for breast, and glioblastoma, an aggressive brain cancer.
Services such as those offered by http://www.gandlscientific.com/ can determine the success of clinical studies. Access to a global pool of talent strengthens the company profile.
So What’s Gone Wrong for Ziopharm?
Shares plummeted following news that a patient had died during experimental gene therapy. Whilst earlier data suggested that patients had responded positively to the treatment, by the end of July, three patients had died.
Two deaths were considered unrelated to treatment. However, the third suffered an intracranial haemorrhage during studies.
Ziopharm stresses that no conclusions have as yet been reached and that data is still being analysed. However, share values plummeted by 17 per cent following the news.
Advice for Investors
Investors have been advised to run for the hills. In fact, some may take legal action against the company.
According to Goldberg Law, Ziopharm violated elements of the federal security law.
To add to its troubles, disappointing data from pre-clinical and clinical trials hints that treatments underway are unlikely to ever be marketed.
Also, all seven pipeline products in Ziopharm are solely dependent upon the technology provided by Intrexon. This is a company also suffering from a huge drop in investor confidence.
A report alleging fraud by the company was immediately refuted and threatened with legal action. Counter-allegations suggested that hedge funders were attempting to de-stabilise the firm.
Intrexon sells a story to investors based upon its synthetic biology processes. Yet the market is jittery, and mindful that not a single product has resulted from Intrexon technology.
Ultimately, the data simply doesn’t stack up. Disappointing trial results and a dependent relationship with Intrexon, mean that shares in Ziopharm are unlikely to recover in the immediate future.