A day after ending trial, Cell Genesys moves up

The South San Francisco company's shares plunged almost 72 percent and hit an all-time low after Cell Genesys halted the trial because patients who received injections of GVAX were dying more often than patients who took only a standard treatment.

In afternoon trading Thursday, the stock added 25 cents, or 31.2 percent, to $1.03.

Analysts said GVAX could still be approved for sale, however. Pamela Bassett of Cantor Fitzgerald noted that a second clinical trial is continuing, and previous trial results have showed the drug leads to longer survival.

"The most substantial market opportunity for GVAX, we think, remains intact," she said," referring to patients with earlier stage prostate cancer, as well as those who have not previously been treated.

Bassett said the stock may trade at a depressed level until full results from the other trial--called VITAL-1--are reported in late 2009. She downgraded Cell Genesys shares to "Hold" from "Buy," and axed her price target to $2 from $10.

On Wednesday, the stock fell to a low of 69 cents per share--far below its previous all-time low of $1.55.