Perspective’s (CATX) radiopharma drug proves to be radioactive to investors
Perspective Therapeutics, Inc. (NYSE:CATX) put the best spin possible on phase I/II data for its radiopharmaceutical VMT-α-NET but at the end of the day the drug only achieved a confirmed response in 1 out of 9 patients in an open-label trial. The company’s stock crashed ~50% on the news announced on November 21, 2024.
VMT-α-NET targets a sub-type of a NET (neuroendocrine tumors), specifically NETs that are positive for somatostatin receptor type 2 (SSTR2). Four years ago, Novartis AG’S (NYSE:NVS) radiopharmaceutical Lutathera was approved to treat gastroenteropancreatic NETs (GEP-NETs). Bristol-Myers Squibb Company (NYSE:BMY) acquired RayzeBio for its clinical-stage drug as a follow-on therapy to Lutathera in GEP-NETs.
The promise of pursuing a proven tumor (NET) target aided Perspective in obtaining a public listing in February 2022 through the merger of privately held Viewpoint Molecular Targeting and listed Isoray, Inc. Viewpoint owned several novel diagnostic imaging agents aimed at radiopharmaceuticals while an Isoray subsidiary was the sole producer of Cesium-131 brachytherapy seeds, a radioactive implant long used to treat cancer.
Perspective, however, pushed a considerable amount of chips toward VMT-α-NET, expecting it could make progress, and a name for the company, by succeeding in a rare and difficult-to-treat cancer. The data did not hold up. In cohort 1, two patients received 2.5 mCi per dose regardless of body weight while in cohort 2 seven patients in Cohort 2 received 5.0 mCi per dose regardless of body weight. Though activity was observed in both cohorts and eight of nine patients had durable control of disease, investors zeroed in on the response rate.
Perspective said it is moving forward with plans to advance VMT-α-NET into cohort 3 at 5 mCi (up to 40 more patients). The FDA appears to support the plan, according to the company.
We issued a report on the VMT-α-NET phase I/II trial in July 2024 when the company’s stock traded at $12.91 per share. On November 21, the company’s shares traded at ~$3.05 per share.
Disclosures:
Discontinuing coverage and exiting its position in CATX.