Aldeyra Therapeutics Inc. (NASDAQ:ALDX)
Aldeyra Therapeutics Inc. (NASDAQ:ALDX) shares rose 34.52% after the clinical-stage biotechnology company unveiled positive ADX-102 clinical trial results on the treatment of dry-eye illness. Investors pushed the stock to an eight-month high after the Lexington, MA-based firm said the positive Phase 2a study results justified progression into Phase 2b trials.
Aldeyra Therapeutics Rally
The rally helped push the stock above a key resistance at $5.50, up from multi year lows around $4.00 per share. The stock had initially touched highs of $7.40 before retreating to $5.65. Renewed investor interest comes on growing confidence of the opportunity at stake if ADX-102 turns out to be a success in clinical trials.
ADX is a novel treatment for the dry-eye ailment that affects about 20 million Americans. Treatment of the disease accounted for approximately $1.8 billion in U.S. prescription sales last year.
The disease is known to cause inflammation, discomfort and, in severe cases, decreased vision. Aldeyra Therapeutics Inc. (NASDAQ:ALDX) believes the typical aldehyde trap platform offers a novel approach for the treatment of dry-eye unlike other alternatives that contribute to ocular inflammation. Onset activity and tolerability demonstrated in Phase 2a trial underscore ADX-102 potential benefits as a treatment of the dry-eye disease.
“These data represent the fourth set of positive phase 2 results with ADX-102 in ocular inflammation,” said Chief Executive Todd Brady. “The breadth of activity across noninfectious anterior uveitis, allergic conjunctivitis, and now dry eye disease confirms the potential of ADX-102 as an important and differentiated therapy in ophthalmology.”
The positive dry-eye trial results come on the heels of Aldeyra announcing the commencement of Phase 3 trials of ADX-102 on the treatment of allergic conjunctivitis.
Aldeyra Q2 Financial Results
Separately, Aldeyra Therapeutics Inc. (NASDAQ:ALDX) reported a wider than expected net loss of (-$5.3) million for the quarter ended June 30, 2017, up from a net loss of (-$4.3) million reported last year. The company attributes the increase in net loss to an increase in clinical trials and research and development costs.
Research and development costs in the quarter came in at $3.8 million compared to $2.8 million for Q2 2016. General and Administrative expenses remained unchanged at $1.5 Million. The company exited the quarter with cash and cash equivalent of $25.8 million.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.