No More Second Chances In Sight For Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS)

[[tagnumber 0]][[tagnumber 1]]The last time we covered Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS), we explored the company‘s prospects of redeeming itself before investors following last year‘s fiasco with its VALOR Phase 3 study for the evaluation of Qinprezo. Back then, i.e last October, disappointing study results wiped off nearly 80 per cent of the stock‘s market value. In spite of the extreme blow, management did not give up. They continued to work towards getting an NDA for that same product candidate and investors gave the stock a second chance. In the light of the most recent corporate developments, however, many (if not all) of them are now bitterly regretting this decision as SNSS crashed once again three weeks ago, this time slicing 72 percent off its market value.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 4]]On July 23, following a meeting with the FDA, SNSS announced that the company had not been given the green light to file an NDA and urged the company to carry out even further tests to gather enough evidence to justify such a filing in the future. Even though the response of the European Medicine Agency, FDA‘s EU counterpart, was much more favorable and encouraged Sunesis to proceed with a Marketing Authorization Application (MAA), this did nothing to prevent the stock from crashing to one of its worst defeats on the charts.[[tagnumber 2]] [[tagnumber 0]]As a result, SNSS is expected to concentrate on the MAA filing in the short–term, the implication being that the company‘s efforts to gain marketing approval on home turf will now be put on hold. While a breakthrough overseas is also likely to give Sunesis a boost, this does not change the fact that a lot of investors have incurred significant losses for the second time in 10 months. That they‘ve lost twice on a similar run of developments must have urged them to initiate an investigation through law firms to determine whether the company may have issued misleading information for the last year.[[tagnumber 2]] [[tagnumber 0]]We have yet to see what the outcome of this investigation will be. What is certain, however is that: a/ SNSS‘s path to the U.S. drug market has just got much longer than expected and b/ the company can no longer rely on getting a second chance.[[tagnumber 2]]