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Aveo sinks 27% after FDA update, earnings

BOSTON (MarketWatch) -- Shares of Aveo Pharmaceuticals sank 27% to $9.76 midday Thursday following news that the submission of its application for U.S. regulatory approval of its drug tivozanib may be delayed. According to Aveo, the U.S. Food and Drug Administration has expressed concerns over certain data in a clinical trial for the product. In order to address these concerns, Aveo plans to submit additional analyses of the data, which may delay submission of the application into the fourth quarter of 2012. In related news, Aveo also reported its second-quarter earnings. The biotech group said it lost 68 cents a share versus 16 cents a share for the same period in 2011. The company reaffirmed that it has enough cash and marketable securities to fund operations into the second half of 2013.