Even though the markets are in the summer doldrums, the health care sector has been incredibly active. In fact, a few biopharma stocks made massive runs over the course of this past week, some losing more than half their cap. Although not all these moves were negative, the overall sentiment was negative.
What has been driving these companies this week was positive clinical trial results and U.S. Food and Drug Administration (FDA) approvals. 24/7 Wall St. has compiled a list some of the biggest of those stocks moving. We have included a little color on each, as well as a recent trading history and consensus price target.
Achieve Life Sciences Inc. (NASDAQ: ACHV) saw its shares skyrocket early in the week after the company announced positive results from its smoking cessation study. Overall, the study demonstrated that cytisine has no clinically significant interaction with any of the hepatic enzymes commonly responsible for drug metabolism nor clinically significant interaction with drug transporters. These results suggest that cytisine may be administered with other medications without the need to modify the dose of the co-administered drug.
Shares of Achieve closed the week at $3.78, with a consensus analyst price target of $0.90 and a 52-week trading range of $3.28 to $62.70. Over the course of the past week, the stock ended relatively flat, but the single-day gain on Tuesday was 34%.
Aquinox Pharmaceuticals Inc. (NASDAQ: AQXP) saw its shares crash on Wednesday after the firm gave a disappointing update for a late-stage trial. Unfortunately, the firm’s Phase 3 LEADERSHIP 301 clinical trial evaluating rosiptor (AQX-1125) for the treatment of interstitial cystitis/bladder pain syndrome failed to meet its primary endpoint.
Essentially, rosiptor failed to achieve a statistically significant reduction in the mean change from the baseline at week 12 in maximum daily bladder pain score compared to the placebo arm in the female subjects.
However, it got worse from there. Management believes that these results support halting all further development activities with rosiptor. Following the results of this trial, the firm will be undertaking a thorough evaluation of its pipeline and other strategic options available to the company.
Shares of Aquinox closed Friday at $2.65, with a consensus price target of $14.00 and a 52-week range of $1.96 to $16.90. Over the past week, the stock fell 83%.
Summit Therapeutics PLC (NASDAQ: SMMT) was another biopharma company that paid the price on Wednesday. In this case, Summit failed to meet its primary or secondary endpoints for its PhaseOut DMD trial of ezutromid in patients with Duchenne muscular dystrophy (DMD). Based on this outcome, the company is discontinuing its development of ezutromid and, as a result, will be implementing cost reduction measures.
Shares of Summit closed out the week at $2.45, with a consensus price target of $19.88 and a 52-week range of $2.17 to $16.86. Over the past week, the stock fell 80%.
Cara Therapeutics Inc. (NASDAQ: CARA) shares made a solid gain on Wednesday after the biotech announced positive results from a midstage trial. The positive top-line data comes from the firm’s adaptive Phase 2/3 trial of IV CR845 in patients undergoing abdominal surgeries. At the 1.0 mcg/kg dose, IV CR845 demonstrated statistically significant reductions in pain intensity compared to the placebo at all pre-specified post-operative periods of 0 to 6 hours, 0 to 12 hours, 0 to 18 hours and 0 to 24 hours.
Shares of Cara closed Friday at $19.15, in a 52-week range of $11.11 to $22.29. Over the course of the week, the stock rose 15%.
Pain Therapeutics Inc. (NASDAQ: PTIE) shares were destroyed on Wednesday after a vote from the FDA was announced. As we have said before, the FDA has the potential to make or break biopharmaceutical companies. In this case, Pain Therapeutics has been broken.
The FDA had a joint meeting of the Anesthetic and Analgesic Drug Products Advisory Committee and Drug Safety and Risk Management Advisory Committee, which precipitated a vote of 14 to three against the approval of Pain Therapeutics’ Remoxy ER.
Looking ahead, the FDA has set a Prescription Drug User Fee Act (PDUFA) target action date of August 7, 2018, for completion of its review of the New Drug Application (NDA) for Remoxy ER.
Shares of Pain Therapeutics were last seen at $2.06, with a 52-week trading range of $2.04 to $12.80. The stock fell 75% last week.