Gemphire Therapeutics Inc (NASDAQ: GEMP) is having an overwhelmingly rough start to the trading session this morning, and for good reason. The company announced some disappointing data from a Phase IIb clinical study of their lead drug. Of course, this led to fear among investors, sending the stock tumbling. As is almost always the case, our partners at Trade Ideas were the first to alert us to the declines. Currently (9:43), GEMP is trading at $9.55 per share after a loss of $9.11 per share or 48.82% thus far today.
GEMP Falls On Upsetting Clinical Data
As mentioned above, Gemphire Therapeutics is having a rough day in the market today as disappointing data has been released surrounding their Phase IIb clinical study of their lead drug. The company said that after enrolling 105 men and money whose LDL was not controlled by statins into its ROYAL-1 study, investigators saw a 17% reduction in bad LDL levels among patients taking gemcabene. Unfortunately, that reduction is significantly lower than the reduction of 23% to 28% seen by Pfizer before licensing the drug out to GEMP. In a statement, Lee Golden, CMO at GEMP, had the following to offer…
“In ROYAL-1, gemcabene met the primary endpoint and demonstrated a statistically significant lower in LDL-C, although the magnitude of LDL-C lowering was less than observed in certain prior studies of gemcabene… The company will perform additional analyses to thoroughly evaluate the results of the trial. Once the additional analysis are complete, we will provide an update.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on GEMP. In particular, we’ll be following the news surrounding gemcabene. While the study did meet its primary endpoint, the significantly lower reduction in LDL-C was disappointing. Nonetheless, it’s not time to count the treatment out just yet. There’s still far more to come. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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