Cardiff Oncology plunges 32% amid management reshuffle, despite upbeat trial data

Shares of Cardiff Oncology, a micro-cap developer of a drug targeting a specific form of colorectal cancer, plunged 32% on Tuesday, January 27. Investors reacted to the company’s announcement of an immediate management reshuffle. The selloff came despite the release of positive clinical data for its lead drug later the same day, as well as the company’s explanation that the executive changes reflected a transition to a new stage of development.

Cardiff Oncology shares fell 32% to $2.00 apiece on the Nasdaq on Tuesday after the company announced changes to its senior leadership. CEO Mark Erlander and CFO James Levine stepped down, while board member Mani Mohindru was appointed interim CEO. The company said it has launched a search for permanent CEO and CFO replacements. It attributed the leadership changes to evolving needs as it moves toward a new stage of clinical development.

In a separate announcement released later the same day, the company reported positive data from a randomized phase II clinical trial of its experimental drug onvansertib. According to Cardiff, adding onvansertib to standard therapy improved outcomes in patients with RAS mutated metastatic colorectal cancer. Cardiff Oncology said it plans to publish full trial results in the second half of 2026 and then proceed to phase III trials. If the late stage study is successful, onvansertib could become a new standard of care, Mohindru said.

Investors seemingly remained unimpressed, however. After a brief intraday rebound, Cardiff Oncology shares resumed their decline.

Cardiff Oncology shares are down 29% year to date and have fallen 41.4% over the last 12 months.

Wall Street analysts remain constructive on the company’s prospects. Cardiff Oncology has eight “buy” ratings versus one “hold” rating, according to MarketWatch data. The average target price stands at $10.25 per share, now implying upside of more than five times versus the Tuesday close.

Earlier in January, Noble Capital Markets initiated coverage of Cardiff Oncology stock with a “buy” rating and a $12 per share target price, about six times the stock’s Tuesday closing level. Noble said the recommendation reflects onvansertib’s novel mechanism of action and its potential to deliver a meaningful advance in cancer treatment.