Did an iceberg just wallop into Galmed Pharmaceuticals Ltd (NASDAQ:GLMD) stock? This biotech company’s shares are plunging at breakneck speed of almost 53%. The reason? GLMD announced top-line results from the ARRIVE Trial, which unfortunately did not meet its primary endpoint. The primary endpoint of the study was improvement of liver fat at 12 weeks, as measured by MRIPDFF. Liver biopsies were not included as part of the evaluation in this pilot trial.
In reaction, Maxim analyst Jason Kolbert downgrades GLMD stock from Buy to Hold, while removing his price target.
Kolbert explains, “While the failure in HIV patients is negative it does not necessarily mean Aramchol will fail in the ARREST study. With that said this is a binary event that we cannot predict with confidence. As a result, we believe lowering our rating to Hold, from Buy, and removing the price target is prudent. Risk adverse investors may choose to exit the stock versus waiting for data next quarter.”
Wall Street is predominantly showcasing positive sentiment on the biotech player, with TipRanks analytics demonstrating GLMD stock as a Buy. Based on 4 analysts polled in the last 12 months, 3 rate GLMD a Buy, in addition to Kolbert’s Hold recommendation.
Galmed is a clinical-stage biopharmaceutical company focused on the development of Aramchol™, a first in class, novel, once-daily, oral therapy for the treatment of NASH for variable populations, as well as other liver associated disorders. Galmed is currently conducting the ARREST Study, a multicenter, randomized, double blind, placebo-controlled Phase IIb clinical study designed to evaluate the efficacy and safety of Aramchol™ in subjects with NASH, who are overweight or obese, and who are pre-diabetic or type-II-diabetic. Galmed also sponsors the ARRIVE Study, a proof-of-concept Phase IIa clinical trial designed to evaluate the safety and efficacy of Aramchol™ in up to 50 patients with HIV-associated NAFLD and lipodystrophy.