Atara Shares Sink After FDA Stalls Cancer Treatment
By Owen Tucker-Smith
Atara Biotherapeutics shares plunged after the FDA rejected its application to bring a blood cancer treatment to market.
Shares of the biotechnology company were recently down 46.5% to $7.04. The stock is down more than 42.83% over the last six months and more than 60% over the last year.
The Thousand Oaks, Calif. company said Thursday morning that it received a complete response letter, which the FDA sends to notify that an application will not be approved in present form. Atara's drug Ebvallo treats a rare form of blood cancer that develops in patients who receive transplants. The company plans to resubmit, and said it expects the drug to be approved within six months of resubmission.
Atara stressed that the FDA's letter did not critique the drug's safety or efficacy. The agency's letter was based on observations from an inspection of a third-party manufacturing facility, the company said.
To fund the company's efforts to get FDA approval, Atara has entered a non-binding term sheet with San Francisco-based private equity manager Redmile Group for funding of up to $15 million. It also said it is eyeing options including a merger or acquisition.
Write to Owen Tucker-Smith at [email protected]