Stock Markets June 2, 2026 09:05 AM

Candel Therapeutics Shares Slip After Lancet Oncology Publishes Phase 3 Prostate Cancer Data

Peer-reviewed phase 3 results show improvement in disease-free survival, but stock falls 2.4% in premarket trading

By Priya Menon CADL

Candel Therapeutics reported peer-reviewed publication of a pivotal phase 3 trial in The Lancet Oncology showing statistically significant improvements in disease-free survival and prostate cancer-specific disease-free survival for aglatimagene besadenovec plus radiotherapy. The company’s shares fell 2.4% in premarket trading following the publication. The findings and extended follow-up data are slated to support a Biologics License Application planned for the fourth quarter of 2026.

Candel Therapeutics Shares Slip After Lancet Oncology Publishes Phase 3 Prostate Cancer Data
CADL

Key Points

  • Peer-reviewed phase 3 data published in The Lancet Oncology showed a 30% improvement in disease-free survival (HR 0.70, p=0.016) and a 38% improvement in prostate cancer-specific disease-free survival (HR 0.62, p=0.0046) for aglatimagene combined with radiotherapy in intermediate- to high-risk localized prostate cancer.
  • Post-hoc biopsy analysis two years post-radiotherapy indicated 80% negative biopsies in the aglatimagene arm versus 63% in placebo, supporting efficacy findings.
  • The study had 745 enrolled patients, reported a mostly grade 1-2 and self-limited safety profile, and the dataset will underpin a planned Biologics License Application submission in Q4 2026. Sectors affected include biotechnology, healthcare, and capital markets.

Candel Therapeutics Inc reported peer-reviewed publication of pivotal phase 3 prostate cancer trial results in The Lancet Oncology, and the company’s shares declined 2.4% in premarket trading on Tuesday after the paper was released.

The published study evaluated aglatimagene besadenovec administered in combination with standard-of-care radiotherapy in patients with intermediate- to high-risk localized prostate cancer. The randomized trial enrolled 745 patients and met its primary endpoint.

Efficacy outcomes reported

The trial showed a 30% improvement in disease-free survival for patients who received aglatimagene compared with those given placebo, corresponding to a hazard ratio of 0.70 and a p-value of 0.016. Prostate cancer-specific disease-free survival improved by 38% in the aglatimagene arm, with a hazard ratio of 0.62 and a p-value of 0.0046.

In a post-hoc analysis of biopsy samples collected two years after completion of radiotherapy, negative biopsies were observed in 80% of patients treated with aglatimagene compared with 63% in the placebo group.

Safety profile

The manuscript describes a favorable safety profile for the investigational regimen. Most treatment-related adverse events were reported as grade 1-2 and self-limited. Commonly noted events included chills, flu-like symptoms, fatigue, pyrexia, pollakiuria, and nausea.

Prior disclosures and extended follow-up

Candel initially announced these phase 3 results in December 2024. The company later presented extended follow-up data at the American Urological Association 2026 Annual Meeting. That additional follow-up, covering an extra 20 months, showed a 39% improvement in prostate cancer-specific disease-free survival. Median follow-up reached 58 months as of March 15, 2026, according to the company’s disclosures.

Regulatory pathway

The published data will be used to support Candel’s planned Biologics License Application submission for aglatimagene, which the company intends to file in the fourth quarter of 2026.

Market reaction

Despite the peer-reviewed publication and statistically significant trial results, Candel’s stock moved lower in premarket trading on the day The Lancet Oncology article appeared. The equity reaction underscores market sensitivity to new clinical data and the timing of subsequent regulatory steps.


Note on scope: This report presents the results and related company disclosures as published. It does not project regulatory outcomes beyond the company’s stated plan to submit a Biologics License Application in the fourth quarter of 2026.

Risks

  • Regulatory uncertainty: The company plans a Biologics License Application submission in the fourth quarter of 2026, which means the treatment must still undergo regulatory review and approval processes that are not resolved by the published data - this impacts the biotechnology and healthcare sectors.
  • Market sensitivity: Despite positive peer-reviewed results, the company’s shares fell 2.4% in premarket trading, highlighting volatility in the stock and equity markets for clinical-stage biotech firms.
  • Data limitations: Some efficacy observations, such as the two-year biopsy analysis, are described as post-hoc and therefore represent secondary analyses rather than primary endpoint results, which can affect interpretation for investors and regulators.

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