The shares of Nektar Therapeutics Pre-open Monday: (NASDAQ.) shares fell more than 33% after the company stated that all its trials with its key cancer drug had been stopped after they failed to deliver results.

Nektar, which was suspended from its trials, tested the combination of bempegaldesleukin, Bristol Myers Squibb and Merck’s (NYSE) cancer drugs OPDIVO, and KEYTRUDA.

Nektar, Bristol Myers and others reached an agreement in 2020 for the testing of a combination medication. Nektar and SFJ Pharmaceuticals reached a deal in 2021 for the testing of Keytruda with a combination therapy.

In March, Nektar and Bristol stopped the two late-stage studies where they tested their combination therapy after one of the trials on melanoma patients didn’t meet expectations.

Drugmakers also ended another trial Thursday following failure of their combination therapy in a late stage study with patients with renal cancer and urothelial tumors.

After Thursday’s announcement by Goldman Sachs, Chris Shibutani, analyst at Goldman Sachs was downgraded from Neutral to Sell with a price target of $3.00 per share. The analyst expects shares to “relatively underperform over the near-to-intermediate term.”

“We view NKTR shares as likely to underperform relative to other names in our coverage over the near to intermediate term as the company transitions through the uncertainties of a strategic realignment. With the potential removed for bempeg to provide upside surprise or generate value, we see limited scope from upcoming nearer term catalysts to drive an inflection in NKTR in the near-to intermediate term,” Shibutani said in a client note.

Robert “Bert” Hazlett, BTIG analyst commented:

“These disappointing results follow equally disappointing data for the combo in 1L melanoma, and now result in the discontinuation of these and all other ongoing studies in the collaboration between Nektar and partner Bristol-Myers. We expect a material consolidation in Nektar’s operations as a result.”

The stock price for Nektar closed Thursday at $6.16

By Senad Karaahmetovic