Odonate Therapeutics Inc. (ODT) continues its fall in the after-hours, falling a further 3.00% as opposed to a drop of 29.39% at its close on November 17. The stock fell from its closing value of $2.33 to $2.26 in the after-hours at a volume of 2.29 million. The day range varied between $1.95 and $3.20, while the 52-week range is $1.95-$28.41. Just in the last five days, the stock lost 27.7% of its value, while losing 88% year to date. ODT has a market capital of $30.99 million at 38.49 million outstanding shares. ODT announced to return capital to stockholders through a share repurchase plan, following which the stock still continued to fall in the after hours.
Founded in 2013, Odonate Therapeutics Inc. (ODT) develops therapeutics for the improvement and extension of the lives of people with cancer.
ODT’s Share Repurchase Plan and its Reasons
On November 17, the company announced to return capital to stockholders through its share repurchase plan. As per the details, ODT will repurchase up to 20 million shares for returning capital to the stockholders. The company will do the repurchase from time to time at its own discretion and can discontinue the plan at any time.
The company’s decision for the discontinuation of its only asset tesetaxel was the reason for the share repurchase plan.
TESETAXEL and its Fall
ODT was working on the development of its only drug, tesetaxel which is a novel chemotherapy agent for the treatment of cancer. On August 24, 2020, the results of the trial of tesetaxel were announced by the company. According to the data provided, the drug failed to produce any positive or helpful results in the treatment of cancer. Moreover, the U.S Food and Drug Administration also gave negative feedback on the drug that its clinical data was unlikely to give it approval.
Following the fall of tesetaxel, Kahn Swick & Foti, LLC announced on August 21, that the firm had started an investigation into ODT. The company, according to the announcement, was sued in a securities class action lawsuit. This led to ODT ending the development of tesetaxel, as announced on March 22, 2021.
ODT’s Financial Results
On November 10, ODT announced its third-quarter financial results for 2021. As per the results, the net loss for the third quarter of 2021 was $14.0 million, against $30.5 million in that of 2020. Accordingly, the net loss per share for the quarter was $0.37, while it was $0.93 for Q3 2020.
Moreover, the cash totaled $95.0 million on September 30, 2021, while it was $157.3 million at December 31, 2020.
