NuCana stock downgraded by William Blair after halted cancer study

On Friday, NuCana plc (NASDAQ:NCNA) experienced a downgrade in its stock rating by William Blair from Outperform to Market Perform. This decision followed the announcement that the company would discontinue its Phase II NuTide:323 study.

The study, which was evaluating NUC-3373 for the treatment of second-line colorectal cancer, was halted due to a steering committee's determination that it was unlikely to demonstrate superiority in progression-free survival compared to the control arm's 5-FU based regimen.

The halted study marks a significant setback for NuCana, as the NuTide:323 trial was the first controlled trial involving NUC-3373. The company's press release on Thursday, August 29, outlined the committee's concerns and the subsequent decision to discontinue the trial. The implications of this development have led to a reassessment of investor confidence in NuCana's ongoing programs.

William Blair expressed concerns over the future of NuCana's pipeline following the trial's termination. The firm highlighted the challenges NuCana may face in regaining investor interest in its other studies, considering this was a crucial trial for NUC-3373.

Additionally, with approximately $15 million in cash reported at the end of the second quarter, which was expected to fund operations into the first quarter of 2025, the financial runway for NuCana is now under scrutiny.

The downgrading of NuCana's stock reflects reduced confidence in the company's ability to deliver on its pipeline promises. The discontinued study and its implications for the company's financial health are now central concerns for investors and industry observers alike. As NuCana navigates this challenging period, the market's response will be closely monitored.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.