Unexpected Drop for Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP) After Phase 2 Results Reported

Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP)

Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP) today issued a press release announcing that its drug candidate JBT-101 met the primary endpoint in treating patients with cystic fibrosis. Curiously, CRBP shares responded by dropping. On Wednesday CRBP shares closed at $9.00 then gapped down this morning to open at $8.20. Shares have reached an inter-day low of $7.20 and an inter-day high of $8.45. Volumes have been expectedly heavy. CRBP shares have an average daily volume of less than 1 million shares traded but by 12:30 AM EST, over 6.6 million shares have exchanged hands.

85 subjects too place in the Phase 2 clinical trial that was designed to assess multiple doses JBT-101 (anabasum). The subjects, who were on standard-of-care medications, were dosed, over an 84 day period, with anabasum or a placebo at 21 sites in the USA and Europe. After dosing, 10 patients discontinued early from the study; 3 patients withdrew consent, 5 withdrew due to adverse events (2 on placebo, 3 on anabasum), 1 subject was lost to follow-up and 2 patients withdrew for treatment-unrelated reasons. Treatment with anabasum yielded a dose-dependent reduction in acute pulmonary exacerbations. The highest dose of anabasum (20 mg twice per day) was associated with a 75% reduction in the annualized rate of pulmonary exacerbations requiring treatment with IV antibiotics, compared to placebo. Patients treated with anabasum 20 mg twice a day had a consistent reduction in inflammatory mediators in their sputum including interleukin-8, neutrophil elastase and immunoglobulin G.

Cystic Fibrosis is also a disease being addressed by Vertex Pharmaceuticals who developed Kalydeco and Orkambi. However those drugs target Cystc Fibrosis patients with specific mutations while Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP) is developing anabasum as a treatment across all cystic fibrosis patients regardless of genetic mutation characteristics.

Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP) is followed by four firms. All four rank CRBP shares as a “Strong Buy” with a price target of $18.00. EPS losses for CRBP shareholders have widened each year since 2012 when the loss was -$0.04. In 2016 that loss was -$0.49. But sales have improved. In 2015, the company reported sales of $600,000 and in 2016 that number grew to $1.9 million. Dilution of Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP) shares increased in 2016 when the company ended the year with 41.14 million shares of CRBP outstanding. In 2015 that number was 31.35 million.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.

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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.

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