When a small drug maker doubles in value after posting clinical trial results, it's worth taking a quick look.
NeuroDerm (NDRM) nearly doubled in value today, rising to $12.25 a share after more than 15 million shares changed hands, after the company reported positive results in a small trial for a treatment for Parkinson's disease.
As MarketWatch reports:
…the company announced promising results from a trial of a treatment for Parkison’s disease. The Israeli company said continuous, subcutaneous delivery of two liquid product candidates had a positive effect on plasma levels, suggesting the high dose version that is aimed at severe sufferers of the disease may be an effective alternative to current treatments that require surgery. The higher dose candidate, known as ND0612H, “is designed to be delivered continuously, thus we believe it should offer a simple and effective treatment option that will minimize the need for surgical intervention in advanced Parkinson’s patients,” Sheila Oren, vice president of clinical and regulatory affairs at the company, said in a statement.
As Scott Henry, an analysts at Roth Capital Partners, writes:
The data confirms our positive hypothesis. We are a bit surprised in the magnitude of the stock price reaction based on the already available interim analysis. However, we maintain our bullish outlook with a price target of $17.50/share.
NeuroDerm went public in mid-November and as of yesterday's closing bell, the stock had fallen 32%.
No comments:
Post a Comment