Shares of Molecular Templates (NASDAQ: MTEM) closed down 23.6% on Monday. The big drop came after the company announced that it was resuming full rights of engineered toxin bodies (ETB) candidate TAK-169 from Takeda (NYSE: TAK). Molecular Templates also said that it’s discontinuing the development of MT-3724, another experimental ETB.
It’s not surprising for a clinical-stage biotech stock to sink when a major partner pulls out on developing a drug. That’s exactly what happened in this case.