Transition Therapeutics Inc (USA) (NASDAQ: TTHI)
Transition therapeutics is having an incredible day in the market today after announcing data from a study looking into their lead Alzheimer’s disease candidate. Today, we’ll talk about the data that was released, what we’re seeing in the market as a result, and what we can expect to see from TTHI moving forward.
TTHI Announces Data From An Alzheimer’s Study
As mentioned above, TTHI is having a great day in the market today after announcing data from a recent study. The review of the study was performed by a subsidiary of TTHI known as Transition Therapeutics Ireland Limited. The study looked into the effectiveness and safety of ELND005 in patients with Alzheimer’s disease and moderate to severe agitation and aggression. Through the analysis of the study, Transition Therapeutics Ireland Limited found that ELND005 had a significant clinical benefit in Alzheimer’s disease patients with severe agitation and aggression. As a result, the data from the Phase 2/3 clinical study will be used as a guide for patient selection in the Phase 3 clinical study of the treatment. In a statement, Dr. Tony Cruz, Chairman and CEO of TTHI had the following to say…
“This study was originally designed as a Phase 2 study, and viewed from that perspective, it has provided TTIL with important data to select a patient population, effectively screen for these patients in a clinical setting and identify a dosing regimen with acceptable safety and tolerability. The next step will be to share these findings with regulators to discuss an ELDN005 Phase 3 program in AD patients with severe agitation and aggression… We believe that the overall data generated in this Phase 2/3 study support the clinical advancement of ELDN005 into a Phase 3 clinical study and will aid us in the identification of a target AD patient population with severe agitation and aggression.”
How TTHI Reacted To The News
Any time a biotechnology company releases positive data with regard to a study of a drug candidate, we can expect to see an overwhelmingly positive reaction in the market. While this doesn’t happen 100% of the time, it is the reaction we see in the vast majority of cases. That’s exactly what we’re seeing from TTHI today. Currently (11:22), the stock is trading at $2.32 per share after a gain of 20.21% so far today.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see more positive movement out of TTHI. The reality is that the company seems to have found a treatment that is not only effective, but also tolerable for Alzheimer’s disease patients. However, it’s important to remember that movement in the market tends to happen through a series of overreactions. As a result, we can expect to see a slight correction tomorrow which will bring the stock down to a more sustainable rate before growth continues. Nonetheless, I do believe that growth will continue. The next positive catalyst for the stock will likely be the start of Phase 3 studies. So, keep your eye on the news if you’d like to take advantage of the momentous growth that’s likely to happen around this time.
What Do You Think?
Where do you think TTHI is headed and why? Let us know in the comments below!
[Image Courtesy of Transition Therapeutics]