CymaBay Therapeutics Inc. (NASDAQ:CBAY)
Shares of CymaBay Therapeutics Inc. (NASDAQ:CBAY) were up by 5.84% in Monday trading session after the company announced positive interim results from its ongoing Phase 2 study of Seladelpar. The company has also announced a public offering of common stock as it looks to raise funds for future Seladelpar trials.
Seladelpar Interim Results
CymaBay Therapeutics Inc. (NASDAQ:CBAY) is a clinical stage company specializing in the development of therapies for liver ailments and other chronic diseases. Seladelpar is the company’s lead candidate drug for the treatment of autoimmune liver disease. The company’s other candidate drugs include Arhalofenate for the treatment of gout, Mbx-8025 a selective agonist for the peroxisome.
Interim results from ongoing Phase 2 study indicate that Seladelpar successfully reduced alkaline levels in patients with primary biliary cholangitis. The drug did not post any safety signal for transaminase elevation or drug induced itch.
Trial results also indicate superior efficacy and better tolerability for Seladelpar compared to other therapies in use. Compared to other studies there was also no signal for drug induced pruritus.
In additions to stimulating alkaline phosphate reductions, Seladelpar improved metabolic and inflammatory levels in patients experiencing low-density lipoprotein-c. Buoyed by the top line results the U.S. Food and Drug Administration (FDA) has approved continuation of Seladelpar trials beyond six months for 5mg and 10 mg.
“The clinical and regulatory progress to date represent a meaningful advancement in the development of Seladelpar for patients with PBC. We are very encouraged by these results and the potential for Seladelpar to improve treatment alternatives in PBC and other chronic liver diseases,” said CEO, Sujal Shah.
Top line results over the next six months should allow the company to plan for Phase 3 trials. CymaBay Therapeutics Inc. (NASDAQ:CBAY) is currently in the process of raising additional funds to finance ongoing trials and future trials. The company intends to sell 10 million shares of its common stock in a public offering. The company will also grant underwriters a 30-day option for the purchase of an additional 1.5 million shares
Positive Seladelpar trial results has already attracted interest from equity research firms. H.C Wainwright recently issued a ‘Buy’ rating on CymaBay Therapeutics Inc. (NASDAQ:CBAY) stock. The firm raised its per share price target to $12 from $7.
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.