Aveo Pharmaceuticals Inc said it received a subpoena from the U.S. Securities and Exchange Commission on July 3 seeking documents and communication covering its experimental cancer drug, tivozanib.
Aveo shares fell 15 percent in extended trading after closing at $2.54 on the Nasdaq on Wednesday.
The SEC is seeking information on tivozanib-related communication between Aveo and the U.S. Food and Drug Administration, investors and others.
The company has lost two-thirds of its value since comments by FDA reviewers first indicated in April that tivozanib faced difficulty in securing approval as a kidney cancer treatment.
Aveo said on Thursday that it will not comment on the SEC's "non-public, fact-finding inquiry" until it is closed or the regulator takes any further action that merits a public disclosure.
The SEC informed Aveo that the inquiry should not be construed as an indication that any violations of law have occurred.
The FDA denied approval to tivozanib as a treatment for renal cell or kidney cancer last month citing inconsistent survival data from the trials which made the results "uninterpretable and inconclusive.
(Reporting by Pallavi Ail in Bangalore; Editing by Joyjeet Das)