Raptor Pharma had a rough day in the market yesterday and it’s being followed by even more declines today after the company announced topline results from the Phase 2b study looking into RP 103. Today, we’ll take a look at the study data, talk about how the stock reacted to the news, and discuss what we can expect to see moving forward. So, let’s get right to it…
Raptor Pharmaceutical Misses Phase 2b Primary Endpoint
In the Phase 2b CyNCh study, RPTP missed their primary endpoint which was to prove improvement in nonalcoholic steatohepatitis in children. During the trial RPTP looked into what is known as RP 103. In medical terms, the treatment is cysteamine bitartrate delayed release capsules. Ultimately, there was no difference in adverse events observed in children on RP 103 when compared to a placebo, and there also was not the two-point decrease in NAFLD Activity Scores with no worsening of fibrosis. So, while the drug was well-tolerated, it simply didn’t prove to be effective. Julie Anne Smith, CEO at Raptor Pharmaceutical Corp., had the following to say…
“While these trial results replicated the serological improvements seen in the earlier Phase 2a study, they did not translate to a measurable effect on histology. We’re disappointed with this outcome given the paucity of treatment for those children with NASH. While we’ll work closely with the NIDDK to understand the full data set, we do not expect to advance this program based on topline results… This clarifies our near-term priorities, which are to maximize the reach of PROCYSBI in nephropathic cystinosis, further the development of RP 103 in Huntington’s and mitochondrial disease, prepare for QUINSAIR’S launch and initiate at least one trial in nontuberculous mycobacteria or broncheictasis. We remain wholly devoted to developing and commercializing transformational treatments for people living with rare diseases.”
How The Market Reacted To The News
As you could imagine, when bad news comes out surrounding a biotechnology company, we tend to see negative reactions in the market. That’s exactly what we saw from Raptor Pharmaceutical Corp. in the market yesterday, as the stock fell from more than $12 per share to just above $7.50 per share throughout the trading session. While today’s declines aren’t quite as massive, we are still seeing downward movement. Currently (12:28), RPTP is trading at $7.08 per share after a loss of 5.85% so far today.
What We Can Expect To See Moving Forward
First off, I’d like to start by saying that I’m expecting to see slight gains tomorrow. However, there is quite a bit of uncertainty revolving around the stock at the moment. We know that RPTP has a relatively strong pipeline and that they are continuing work on RP 103. This could turn out to go either way. With that said, I’m expecting to see relatively sideways movement after tomorrow’s correction until we receive news of the next trials.
What Do You Think?
Where do you think RPTP is headed and why? Let us know in the comments below!
[Image Courtesy of Raptor Pharmaceutical Corp.]