Deciphera Reveals Topline Results of INTRIGUE Phase 3 Clinical Study; Shares Crash


Shares of Deciphera Pharmaceuticals (DCPH) plunged 75.5% on Friday to close at $8.82 after the commercial-stage biopharmaceutical company provided update and topline results of the INTRIGUE Phase 3 clinical study of QINLOCK.

The study was evaluating QINLOCK in patients with gastrointestinal stromal tumor (GIST), who were previously treated with imatinib. The INTRIGUE Phase 3 clinical study, a randomized, global, multi-center, open-label study, was evaluating the efficacy and safety of QINLOCK compared to sunitinib.

As per the topline analysis update, treatment with QINLOCK did not meet the primary endpoint of progression-free survival (PFS), demonstrated by independent radiologic review, which used modified Response Evaluation Criteria in Solid Tumors (RECIST).

The CEO of Deciphera, Steve Hoerter, said, “While we are disappointed with these results, which we learned yesterday, we believe this was a robust, well-designed, and well-executed study.  The full results from the INTRIGUE Phase 3 clinical study are expected to be presented at an upcoming medical meeting…QINLOCK remains the standard of care and only approved therapy in patients with fourth-line GIST, and we are committed to ensuring that patients around the world in the fourth-line GIST treatment setting have access to QINLOCK.” (See Deciphera stock charts on TipRanks)

Wall Street’s Take

Following the news, JMP Securities analyst Reni Benjamin downgraded the stock to Hold from Buy and decreased the price target to $64 (625.62% upside potential) from $70.

Benjamin expects the company to decrease R&D expenses significantly to conserve cash in the near term, given that 4L GIST QINLOCK revenues have already peaked. “While the company did not update R&D guidance, we expect expenses to decrease in the near term by approximately $15 MM,” the analyst said.

The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 3 Buys and 3 Holds. The average Deciphera price target of $51.80 implies 487.3% upside potential from current levels. Shares have lost 86.4% over the past year.

Smart Score

According to TipRanks’ Smart Score rating system, Deciphera gets a 5 out of 10, which indicates that the stock is likely to perform in line with market averages. (See Top Smart Score Stocks on TipRanks >>)

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