Ritter Pharmaceuticals Inc. (NASDAQ:RTTR)
Shares of Ritter Pharmaceuticals Inc. (NASDAQ:RTTR) gained 0.2% after the company announced the closing of a previously announced underwritten public offering. The developer of therapeutic products says it generated gross proceeds of $23 million from the offering.
Ritter Pharmaceuticals Inc. (NASDAQ:RTTR) intends to use net proceeds from the offering to initiate Phase 3 clinical trials for its novel treatment for lactose intolerance RP-G28. The trial is set to begin in the first half of next year.
The phase 3 program will incorporate guidance from an end of Phase 2 meeting with the Division of Gastroenterology and Inborn Errors Products. RP-G28 is a non-digestible oligosaccharide developed to modulate the gut microbiome by stimulating and adapting bacteria in the gastrointestinal tract.
The pricing of the underwritten public offering did not go well with investors amidst concerns that it would lead to further stock dilution. Investors had initially pushed the stock down by 29%, a sell-off that has plunged the stock to multi-year lows.
Ritter Pharmaceuticals Inc. (NASDAQ:RTTR) faces an uncertain future as its share price has dropped below $1, a requirement for continued listing on the NASDAQ. The stock has underperformed the overall industry after losing more than 80% in market value since the start of the year.
RP-G28 Phase 3 Trial
The outcome of the upcoming Phase 3 trials for RP-G28 will undoubtedly affect trader confidence on the shares. The company has already held a meeting with the U.S. Food and Drug Administration (FDA) during which it received a clear guidance of what is expected from the trial.
“We are pleased with the productive discussion and open dialog we had with the FDA regarding our Phase 3 plans. We are confident we can execute a successful Phase 3 program furthering our goal to ultimately file a successful NDA and commercialize RP-G28 as the first FDA-approved treatment for lactose intolerance,” said,” said Andrew J. Ritter, co-founder, and president
The trial’s primary endpoint will be the evaluation of patient’s composite L1 symptoms after lactose change. Ritter Pharmaceuticals Inc. (NASDAQ:RTTR) will also evaluate baseline symptoms scores. Secondary endpoints will be to evaluate L1 signs and symptoms and global assessment outcomes.
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: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.