Why Sienna Biopharmaceuticals Shares Are Stumbling

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Sienna Biopharmaceuticals Inc. (NASDAQ: SNNA) shares pulled back on Monday after the company announced less than favorable results from a couple of its acne trials. The two pivotal acne trials were evaluating SNA-001 in conjunction with 1064 nm and 810 nm lasers, and they did not show statistical significance on the primary and secondary endpoints.

In the 810 nm laser study, SNA-001+Laser and Vehicle+Laser demonstrated a 37.4% and a 36.5% reduction from baseline in inflammatory lesion count, respectively. The difference between treatments was not significant for the primary endpoint. For the secondary endpoint, neither change from baseline in absolute inflammatory lesions nor Investigator Global Assessment (IGA) 1-grade responder rate were statistically significant.

In the 1064 nm laser study, SNA-001+Laser and Vehicle+Laser achieved a 38.7% and a 41.9% reduction from baseline in inflammatory lesion count, respectively, but this was not statistically significant. Also, neither change from baseline in absolute inflammatory lesions nor IGA 1-grade responder rate were statistically significant.

Results from a third, independent pivotal trial in acne using SNA-001 in conjunction with a 755 nm laser are expected in the fourth quarter of 2018.

Frederick C. Beddingfield III, MD, Ph.D., president and CEO of Sienna, commented:

We are disappointed by these results, which did not confirm the findings from the previous proof of concept study. Acne is a complex, multi-factorial disease affecting most people at some point in their lives. Researchers have long recognized the challenges to achieving clinically meaningful outcomes in acne. We conducted our trials with scientific rigor, but the data did not show a benefit from SNA-001. Sienna was founded on a strategy of developing a diversified multi-asset pipeline by a highly experienced team. We have several additional clinical studies from two separate technology platforms across a number of therapeutic indications and development stages reading out over the next three quarters, and remain highly focused on delivering innovative therapies that matter for patients.

Shares of Sienna were last seen down about 4% at $15.01, with a consensus analyst price target of $40.00 and a 52-week trading range of $12.77 to $29.25.