As the biotechnology stock indexes slipped, Cytogen Corp.'sstock was walloped Wednesday after its management reporteddisappointing European sales of its cancer imaging product.
Shares of the Princeton, N.J., company (NASDAQ:CYTO) lost$3.50 to close at $15.75.
The Chicago Board Options Exchange Biotech Index fell 1.970 to141.6, and the AMEX Biotechnology Stock Index slid 3.29 to149.06.
Speaking to the New York Society of Security Analysts,Cytogen President Thomas McKearn said European sales of hiscompany's OncoScint-colorectal imaging agent were $337,000during the first six months of the year -- about half what thecompany had anticipated. "We're not satisfied," McKearn said.
To combat slack sales, Cytogen is setting up a trainingprogram aimed increasing product awareness among nuclearmedicine physicians. However, the effort is not expected tohave significant impact until early 1993, McKearn said.
As a preventive measure, the company has stepped up trainingefforts directed at physicians in the U.S., where the companyis optimistic about soon obtaining marketing approval ofOncoScint imaging agents for both colorectal and ovariancancers.
Cytogen's goal of achieving break-even results in 1993 dependson FDA approval of the OncoScint products, said Martin D.Cleary, the company's chief financial officer. McKearn expectsthe company will lose about 60 cents a share in 1992.
Cytogen figures that OncoScint can within three years ofapproval grab a 30 percent share of the estimated $200 millionU.S. market for colorectal cancer imaging agents and a 60percent share of the $20 million ovarian cancer imagingmarket, Cleary said.
"If approval comes in September or October, it shouldn't makea lot of difference," Cleary said. "It'll only delay therealization of revenues."
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