$CMPX amended its Form 4 filing yesterday to reflect these were code P transactions - open market purchases that company had originally erroneously misreported as Code A transactions - which would have been stock grants. The green footnotes in both Amended Form 4s explains that the amendment was indeed to correct that coding error and report these as the open market common stock purchases that they were.
This is very significant because the company is about to enter discussions with the FDA to approve its new second line chemotherapy drug tovecimig (CTX-009)
for bile duct cancer.
And the General Counsel who bought 25K shares of company stock is the company’s point person in getting FDA approval for its new chemotherapy drug as a second line treatment for bile duct cancer - a $1 billion market.
The stock plunged over 70 percent this week (from $7 to $1.70) after an administration error in its phase 3 clinical trial destroyed the reliability of its Overall Survival endpoint.
The doctors conducting the study contaminated the control group by crossing some of them over who had taken the control agent paclitaxel and then gave them the company’s study drug tovecemig. Those crossover patients lived twice as long on average as the control arm patients who did not take the study drug (12 vs 6 months).
Because there is no second line therapy for bile duct cancer the FDA will likely approve the drug. The study showed good improvement in progression free survival time and the crossover group lived twice as long. The study did not meet the overall survival endpoint because of the crossover which ruined the data in the control arm.