Obseva SA (NASDAQ: OBSV) is flying in the market this morning, and for good reason. The company reported positive results from a Phase 2b clinical trail. Of course, the news excited investors who are reacting by pushing the stock upward. Today, we’ll talk about:
- The results of the clinical trial;
- what we’re seeing from OBSV as a result; and
- what we’ll be watching for with regard to the stock ahead.
OBSV Announces Positive Clinical Trial Results
As mentioned above, Obseva is having an incredibly strong start to the trading session this monring after the company announced results from a clinical trial. In a press release issued early this morning, the company announced positive clinical results from the EDELWEISS Phase 2b clinical trial of linzagolix. Linzagolix is the company’s oral GnRH receptor antagonist and is in development for the treatment of endometriosis-associated pain. At the moment, the company is identifying two doses of the treatment that are intended to be studied in the upcoming Phase 3 program. One does is being assessed for full estradiol (E2) suppression with the other dose being developed to target partial suppression.
During the EDELWEISS Phase 2b clinical trial, OBSV enrolled 327 women with moderate-to-severe endometriosis-associated pain. In the release, the company announced that the primary endpoint was reached for the three top doses. Those receiving the 75mg does had the highest responder rate at 61.5% compared to the placebo responder rate at 34.5%. The company also said that when it comes to menstrual pain, patients receiving the 200mg does reported the highest responder rate at 78.9% in comparison to the placebo responder rate at 28.5%. In a statement, Ernest Loumaye, MD, PhD, OB/GYN, CEO and Co-Founder at OBSV, had the following to offer:
We are very pleased by the EDELWEISS results reported today. We believe that these data strongly support the therapeutic potential of linzagolix for improving the condition and well-being of patients suffering from endometriosis. In addition, we believe these data further confirm ObsEva’s vision and product development strategy that a significant proportion of patients will not require full E2 suppression which mandates add-back hormone replacement therapy. With these data, we reiterate our intention to move to Phase 3 by the end of the year with two doses of linzagolix.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to invest is that the news moves the market. In the case of Obseva, the news proved to be overwhelmingly positive. With the strong results from the clinical trial in hand, it’s time to move the treatment down the line to the Pivotal Phase 3 clinical trial and one step closer to commercialization. So, it’s no surprise to see that excited investors are sending the stock on a run for the top. At the moment (9:04), OBSV is trading at $19.50 per share after a gain of $4.95 per share or 34.02% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on OBSV. In particular, we’re interested in following the story surrounding the company’s ongoing work to bring linzagolix to market considering the overwhelmingly positive Phase 2b results that were released this morning. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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