Why Sirtex Medical Ltd Fell 13% Today

Sirtex Medical Ltd [ASX:SRX] fell as much as 13.3% this morning to $14.74 per share.

What happened to Sirtex Medical shares?

This morning, SRX revealed the results of their 459 patient SARAH clinical study. The study compares a medical device called SIR-Spheres Y-90 resin microspheres to the current standard-of-care systematic therapy — sorafenib — in patients with liver cancer.

The results didn’t show positive signs for SRX’s medical device. The study failed to show that the SIR-Spheres product extended the lives of patients when compared to standard methods of treatment.

What now for Sirtex Medical?

It’s probably an announcement that no biotech investor wants to hear. But SRX management is still positive on their future prospects.

As SRX CEO Nigel Lange said:

Although SARAH study did not meet the primary endpoint of an OS benefit versus sorafenib, it is important to note that 27% of patients randomised to SIR-Spheres microspheres in the IYY analysis didn’t receive out treatment.

The median time from randomisation to treatment was unusually long at 29 days relative to real world clinical experience, and a high proportion of difficult to treat patients with capsular invasion (PVT) of their disease were enrolled.

However, it could be a long while before the stock returns to $17 per share.

Regards,

Härje Ronngard,

Junior Analyst, Money Morning

PS: If you want to lay down a little money on the hottest corner of the ASX right nowbut you dont know your way around the small-cap sectorthis report is for you. Get access now (free).


Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

Money Morning Australia is published by Port Phillip Publishing, an independent financial publisher based in Melbourne, Australia. As an Australian financial services license holder we are subject to the regulations and laws of Corporations Act and Financial Services Act.


Leave a Reply

Your email address will not be published. Required fields are marked *

Money Morning Australia