Some investors might love biotech stocks for their lottery ticket-like returns when a company strikes medical gold. A lottery ticket, however, costs only a buck or two, while getting a biotech company wrong can hurt a lot more than that. Case in point: OHR Pharmaceutical Inc (NASDAQ:OHRP) is crashing nearly 80% on Friday, after reporting that topline data from its MAKO study did not meet its primary efficacy endpoint.
The MAKO study evaluated the efficacy and safety of topically administered squalamine in combination with monthly Lucentis® injections for the treatment of wet age-related macular degeneration (“wet-AMD”). The primary efficacy endpoint was the mean visual acuity gain at nine months, using a mixed-effects model for repeated measures (MMRM) analysis. Subjects receiving squalamine combination therapy (n=119) achieved a mean gain of 8.33 letters from baseline versus 10.58 letters from baseline with Lucentis® monotherapy (n=118). There were no differences in the safety profile between the two treatment groups.
“We are very disappointed with the outcome of the MAKO study,” commented Dr. Jason Slakter, chief executive officer of Ohr. “We are grateful to the patients and physicians who participated in the clinical trial. Based on these results, we intend to evaluate strategic alternatives to maximize shareholder value.”
On the ratings front, Roth Capital analyst Yasmeen Rahimi downgraded OHRP to Hold, in a report released today. According to TipRanks.com, Rahimi has a yearly average return of 50.2%, a 77% success rate, and is ranked #574 out of 4752 analysts.
Ohr Pharmaceutical is a pharmaceutical company, which focuses on the development of novel pharmaceuticals for the treatment of ocular diseases. The company was founded by Irach B. Taraporewala in 2008 and is headquartered in New York, NY.