BioCryst Pharmaceuticals (BCRX) Stock: Declining On Poor Trial Results

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BioCryst Pharmaceuticals, Inc. (NASDAQ: BCRX)

BioCryst Pharmaceuticals is having an incredibly hard time in the market at the moment as the result of a recent release of clinical trial results. Unfortunately, a trial has shown that one of the company’s lead candidates is ineffective. Today, we’ll take a look at the trial results, how the market reacted to the news, and what we can expect to see from BCRX moving forward. So, let’s get right to it…

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BCRX Trial Results Prove To Be A Miss

As mentioned above, BCRX reported the results of a recent trial. The trial known as OPuS-2 was a clinical trial of one of the company’s lead candidates known as avoralstat. Avoralstat is a drug that is administered three times per day for the treatment of hereditary angioedema attacks, also known as HAE attacks. During the study, BCRX administered treatments ranging between 500 and 300 mg three times daily over the course of 12 weeks. During this time, 36 patients were given the 300 mg dosing, 38 patients were given the 500 mg dosing, and 36 patients were given a placebo. Unfortunately, the goal of demonstrating a significantly lower mean attack rate when compared to the placebo was missed. In fact, the treatment proved to be irrelevant during the trial, setting BCRX back quite a bit. In a statement, John P. Stonehouse, President and CEO at BioCryst Pharmaceuticals had the following to say…

OPuS-2 was a well-designed and executed trial that gave us a clear answer; this dosage form of avoralstat is not a viable formulation to move forward… While we are disappointed in the study results, we learned that meaningfully better exposure is needed for avoralstat to succeed. We expect results from a relative bioavailability study testing a novel solid dosage form of avoralstat by mid-year – the primary goals of this study are to achieve much higher exposures and twice daily dosing. Our other opportunity to achieve higher exposure of an oral kallikrein inhibitor is with BCX7353 ApeX-1 dose ranging study in HAE patients by year end.”

How The Market Reacted To The News

As investors, we’ve learned to expect negative movement in the market any time negative news is announced with regard to a publicly traded company. As a result of the poor trial results produced by BioCryst, we’re seeing exactly that. Currently (10:00), BCRX is trading at $2.02 per share after a loss of $4.12 per share or 67.18% so far today.

What We Can Expect To See Moving Forward

Moving forward, I’m not expecting much by way of bullish activity out of BCRX. The reality is that the OPuS-2 trial was an incredibly important one. It was the first in the company’s attempts to treat HAE attacks with its idea of avoralstat exposure. Perhaps more importantly, the company has a few trials set to end at some point during this year which are designed to treat the conditions with the same treatment in different doses. While the exposure to avoralstat is quite a bit greater in the upcoming trials, I don’t believe that these trials will yield positive results. In fact, it could yield adverse results. While the numbers weren’t statistically relevant, the results released today showed that those treated with exposure to avoralstat had a slightly higher mean attack rate than those treated with the placebo. This will likely prove to be the case in future studies revolving around this treatment. For these reasons, I’m expecting further declines on BCRX moving forward.

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What Do You Think?

Where do you think BCRX is headed moving forward? Let us know your opinion in the comments below!

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