Oncopeptides' shares crash as it pulls Pepaxto from the market, plans to shut down commercial units

Because its drug for relapsed or refractory multiple myeloma may increase the risk of death, Swedish biotech Oncopeptides has sidelined the treatment in the U.S., a move that will require the company to undergo a radical restructure.

The company's stock price closed the day almost 77% down.

In addition to taking Pepaxto off the market eight months after the drug won accelerated approval from the FDA, Oncopeptides revealed it will shut down its business units in the U.S. and Europe and return to its R&D-focused roots.