Drugmaker shares plummet ahead of FDA meeting on antibiotic
WASHINGTON — Shares of drugmaker Cempra Inc. plunged Wednesday after federal regulators raised concerns about potential liver toxicity risks with its closely-watched experimental antibiotic.
Wall Street analysts said the company’s drug could still reach the market but with major restrictions or a requirement for a large, follow-up safety study. That could present “significant additional financing risk” for the small North Carolina company, according to Janney analyst Debjit Chattopadhyay.
“Cempra will need additional capital during 2017, by our estimates,” states Chattopadhyay, who holds a neutral rating on the company.
Shares of Cempra — which currently has no drugs on the market — fell more than 61 per cent to $7.17 in afternoon trading.