Atossa Genetics Inc. (NASDAQ:ATOS)
Atossa Genetics Inc. (NASDAQ:ATOS) slumped 11.95% after announcing preliminary results from a Phase 1 study of its novel treatment for breast cancer, Endoxifen. Thursday’s sell-off came as a surprise given that it came after positive news. The stock has also been on an impressive run since the start of the month.
The stock is currently trading in a $0.54 – $0.93 trading range after gapping lower in March. It faces immediate resistance at the $1.00 a share mark above which it could rise to the $1.50.
Endoxifen Phase 1 Results
The clinical stage pharmaceutical company says its novel treatment for breast cancer, Endoxifen, was well tolerated at all dose levels, during the phase 1 trial. The treatment tropical formulation did not trigger any significant safety signals or adverse events. The top line results thus demonstrated its suitability for further clinical development.
“Based on these positive preliminary results, we are advancing our topical Endoxifen into Phase 2 studies,” commented Dr. Steven C. Quay, CEO, and President. “We look forward to announcing the results from the oral arm of our Phase 1 study in the coming 30 to 60 days,” continued Dr. Quay.
Atossa Genetics Inc. (NASDAQ:ATOS) Endoxifen is an active metabolite of Tamoxifen, which is an FDA approved drug for preventing breast cancer. According to the company a topical formulation of the drug could help combat breast density, which is an independent breast cancer risk.
Tamoxifen has, to date, been used to prevent new and recurrent forms of breast cancers. However, its benefits-cost ratio has always raised concerns. Only 2% of women at a high risk of developing breast cancer currently use the formulation. The risk or actual side effects associated with the treatment has always been a big concern for patients and physicians.
Taking into consideration the number of women who are at a high risk of developing breast cancer, Atossa Genetics Inc. (NASDAQ:ATOS) could generate up to $1 billion in sales on the approval of its topical formulation Endoxifen.
Separately, Atossa Genetics Inc. (NASDAQ:ATOS) did not generate any revenue for the three and six months ended June 30, 2017. Total operating expenses for the three and six months totaled $1.9 million and $3.6 million respectively. During the quarter, the company completed a capital raise of $4.4 million to be use d on the clinical development of Endoxifen development as well as for working capital purposes.
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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.