Therapix Biosciences Ltd. (NASDAQ: TRPX) is rocketing in the market this morning after releasing positive clinical data. The data came from a Phase IIa clinical study that was held at Yale University. Of course, the data proved to be positive, causing the dramatic climb in value that we’re seeing in the market. Today, we’ll talk about:
- The clinical data;
- what we’re seeing from TRPX as a result;
- risks to consider when investing in this company;
- and what we’ll be watching for ahead.
TRPX Releases Positive Clinical Data
As mentioned above, Therapix Biosciences is having an incredibly strong start to the trading session this morning after announcing topline results from a Phase IIa clinical trial. In a press release issued early this morning, the company announced the results, suggesting that THX-110, a cannabinoid product platform, significantly improved symptoms over time in adult patients with Tourette syndrome.
The Phase IIa clinical study was a single-arm, open label trial. During the trial 16 patients received one day treatment of the drug developed by TRPX via oral administration and was followed up for a period of 12 weeks. The primary endpoint of the clinical trial was to assess the performance of THX-110 in the treatment of adult patients suffering from symptoms of Tourette syndrome. The primary endpoint was measured by the Yale Global Tic Severity Scale Total Tic Score, which is the global-standard for assessing symptom severity.
In the release, TRPX announced that all 16 patients with medication-refractory Tourette syndrome realized a reduction of tic symptoms. In fact six patients experience a response to the treatment of greater than 25%. In a statement, Adi Zuloff-Shani, Ph.D., Chief Technology Officer at TRPX, had the following to offer:
The successful completion of this study is a key milestone in our clinical development plan of our proprietary drug candidate THX-110 for the treatment of Tourette syndrome for which current available treatments are frequently inadequate or unsafe… Moreover, these results are of particular interest as the pharmacology of THX-110 appears to be distinct from existing medications for TS and may offer a unique option for treating these patients. This study was designed primarily to confirm safety, tolerability and feasibility in this challenging patient population and is encouraging that we obtained positive data that suggests that the combination of dronabinol (∆-9-tetrahydracannabinol) and palmitoylethanolamide (PEA) (THX-110) should be pursued as a treatment for TS patients,” continued Dr. Zuloff-Shani. “Based on these study results, we intend to initiate a randomized, double-blind, placebo controlled study to evaluate the safety, tolerability and efficacy of daily oral THX-110 in treating adults with Tourette syndrome.
The above statement was followed up by Dr. Ascher Shmulewitz, M.D., Ph.D., Chairman and Interim CEO at TRPX. Here’s what he had to offer:
We believe that the efficacy demonstrated in this study further reinforce the potential role of cannabinoids in the field of CNS and movement disorders and suggests that Therapix Biosciences may have a proprietary cannabinoid product candidate in the treatment of Tourette syndrome… These data are a catalyst for the acceleration of Therapix’s Entourage Effect research interests.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news causes movements. In this particular case, the news proved to be overwhelmingly positive. 100% of patients involved in the study showed improvement in tic symptoms as a result of the administration of THX-110. Of course, this is going to lead to positive movement in the value of the stock. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (11:01), TRPX is trading at $6.44 per share after a gain of $1.24 per share or 23.85% thus far today.
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Consider The Risks
As always, when considering an investment in TRPX, you should do your due diligence and consider the risks. In this particular case, Therapix is a clinical stage company with no approved products on the market. Therefore, the success of the stock is highly dependent on the company’s ability to continue to show positive data surrounding THX-110 as well as the other product in the pipeline THX-130. Any failed trial could lead to massive declines.
Also, due to the fact that the company has no approved products on the market, the financial picture largely depends on the continued support of investors and lenders. We could see dilution of shares if and when further funding is needed, and there is no guarantee that the company will ever have a drug approved by regulatory bodies or make a profit.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TRPX. In particular, we’re interested in following the story surrounding the company’s work to prove the efficacy of THX-110 and bring this treatment to market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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