Exelixis Plunges On Drug Trial Failure

Exelixis Inc. had given hope to investors in March that trials of its prostate cancer drug would yield positive results, even if the study was delayed.

Today that hope was dashed when the San Francisco-based company said clinical trials for the drug did not meet expected goals. The company has two other ongoing trials, but this failure is going to cost 160 employees their jobs. Shareholders sold off in droves, and the stock fell a whopping 53.02% in early trading.