BION Tech, a biotechnology company based in the US, said Wednesday it was in the red on Tuesday after news that Pfizer and its drugmaker rival AstraZeneca had pulled out of its deal to develop a drug for hepatitis C.
BionTech said its shares plunged as much as 13% to $2.29 in the afternoon after Pfizer said it was no longer interested in the company’s plans for the drug, which is used to treat the infection caused by hepatitis C virus.
Pfizer said in a statement that the withdrawal of its participation in Bion Tech was “a significant and unexpected decision” and that the company is “evaluating all our options” to pursue new opportunities.
Shares of Bion and Astra declined.
Shares fell as much a 15% in New York, where Pfizer has its largest office.
Bions shares, which closed up 6% on Wednesday, closed down 2% at $2,838.60 in New Haven.BION, which also makes a hepatitis C vaccine, said its stock fell 3% to close at $1,857.40.
AstraZenech, a subsidiary of Astra Pharma, had a $7 billion deal to commercialize the vaccine and sell it in the United States.
Astra has a market value of about $15 billion.
Biosciences America, the lobbying group that represents the drugmakers, had no comment on the Bion news.
BioSciences, the firm that oversees the vaccine, has said it expects to be profitable in the first quarter of 2018.
Biovisav is a patented drug developed by Bion, which said it could be licensed by the US Food and Drug Administration as soon as the end of the year.