Zosano Pharma Corp (NASDAQ: ZSAN) is flying in the pre-market hours this morning, and for good reason. The company announced that it has completed a key clinical milestone, exciting investors and sending the stock running for the top. Today, we’ll talk about:
- The milestone;
- what we’re seeing from ZSAN stock as a result; and
- what we’ll be watching for ahead.
ZSAN Announces Milestone Achievement
As mentioned above, Zosano Pharma is having a great day in the market today after announcing that it has achieved a milestone. In a press release issued early this morning, the company said that it has completed the second and final goal of the long-term safety study for Qtrypta.
The milestone was related to safety when using Qtrypta for the treatment of migraine attacks. The data generated in the trial showed tha tthe treatment was well-tolerated, safe and had strong efficacy results.
Through the clinical program, more than 5,800 migraine attacks have been treated with the company’s drug to date. In a statement, John Walker, Chairman, President and CEO at ZSAN, had the following to offer:
Successfully concluding our Phase 3 program for Qtrypta and observing consistent long-term safety and efficacy results are exciting milestones for Zosano. We look forward to continued interactions with the FDA as we prepare to submit a New Drug Application in the fourth quarter of this year for Qtrypta. We believe Qtrypta will be an important alternative for patients whose migraine disease is not well managed with other therapies. We view Qtrypta as the first of many therapies that can be expertly formulated with our novel and proprietary technology. If approved by the FDA, Qtrypta would be the first marketed product using intracutaneous delivery.
The above statement was followed up by Deborah Friedman, M.D., M.P.H., cheif of the Division of Headache Medicine and founding director of the Headache and Facial Pain Program at UT Southwestern Medical Center. Here’s what she had to say:
With these additional data showing long-term tolerability and robust efficacy, I believe Qtrypta, if approved, will be an important and attractive treatment for my patients with migraines. I am especially excited by the novel microneedle patch technology that delivers drug through the skin for rapid pain relief in patients who are often too nauseated to take oral medications and can’t wait for drugs to travel through the gastrointestinal tract before providing pain relief.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that it’s important to follow the news. After all, the news moves the market. In the case of Zosano Pharma, the news proved to be positive.
With the successful completion of this Phase 3 trial, the company is one late-stage step closer to the completion of the development of Qtrypta. If the drug is approved, it could be a major revenue driver for the company.
So, it’s not surprising to see that excited investors are pushing the stock up in the market this morning. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:21), ZSAN is trading at $2.54 per share after a gain of $0.33 per share or 14.93% 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 ZSAN. In particular, we’re interested in following the story surrounding the continued development of Qtrypta considering the strong news that was released today. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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