Cell Genesys (CEGE) falls to 69 Cents a Share

Game over for Cell Genesys, Inc. (NASDAQ:CEGE), they have stopped a late-stage trial of its prostate cancer therapy, GVAX, after 20 more deaths.  Now all hopes rest on Dendreon (DNDN).

BANGALORE, Aug 27 (Reuters) - Cell Genesys Inc (CEGE) said it stopped a late-stage trial of its prostate cancer therapy, GVAX, after 20 more deaths were reported in patients on the drug versus those on a dummy treatment, and its shares crashed more than 75 percent to an all-time low.

The cause for the "imbalance in deaths" has not yet been identified, the biotechnology company said. An independent committee, which pointed out the death mismatch, reported no new safety issues for the therapy, it added.

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"This is obviously a negative event for Cell Genesys and stock will take a big hit. We also believe that Dendreon (DNDN) will be negatively impacted based on how the two stocks have been linked to date," analyst Joe Pantginis from Canaccord Adams said.

Cell Genesys' rival Dendreon (DNDN) is developing a similar drug, Provenge, which has been mired in regulatory hurdles for years and has failed to show it significantly slowed the progress of advanced prostate cancer.

Both GVAX and Provenge are potential vaccines designed to stimulate the body's immune system to fight an existing cancer.

SOURCE: http://www.reuters.com/article/rbssHealthcareNews/idUSBNG18178120080827