ORIC Shares Plunge on Tazverik Withdrawal, EZH2 Concerns

ORIC Stock Drops Sharply on Partner's Drug Withdrawal

Oric Pharmaceuticals Inc. (NASDAQ:ORIC) experienced a significant 18.5% drop in its stock price on Monday. The decline followed an announcement from partner Ipsen regarding the complete market withdrawal of the cancer drug Tazverik (tazemetostat).

Underlying Safety Concerns

The decision to withdraw Tazverik was prompted by findings from the Phase 3 SYMPHONY-1 trial. An Independent Data Monitoring Committee identified secondary hematologic malignancies in patients, advising that the risks of the treatment regimen might outweigh its potential benefits for relapsed/refractory follicular lymphoma.

Impact on the EZH2 Inhibitor Market

The news has created a negative sentiment across the broader EZH2 inhibitor drug class. Analysts suggest that investors are now concerned about a potential safety overhang for similar drugs, including Oric's rinzimetostat, until it can be proven that the issue is specific to Tazverik or its particular treatment combination.

Outlook and Future Catalysts

While near-term stock weakness is anticipated for Oric, its future trajectory will likely be determined by the upcoming mid-year results from the Mevpro-1 trial. Pfizer's subsequent decision on the development path for its EZH2 inhibitor will also be a critical factor for the market.

FAQ

Q: Why did Oric Pharmaceuticals' stock fall?
A: The stock fell 18.5% after Ipsen announced the withdrawal of Tazverik, a drug linked to Oric, due to safety concerns over secondary malignancies found in a clinical trial.

Q: How does this news affect other companies?
A: It raises concerns for the entire class of EZH2 inhibitor drugs, potentially impacting companies like Pfizer and Oric that are developing similar treatments.

Source: Investing.com