Wednesday turned out to be a nightmare for Aptinyx (APTX) investors, as the stock price crashed nearly 70% in the wake of clinical setback. Specifically, the clinical-stage biopharmaceutical company reported that its Phase 2 trial of NYX-2925 in diabetic peripheral neuropathy (DPN) failed to meet its primary endpoint of change from baseline in the average daily pain scores during the last (4th) week of treatment.
While NYX-2925 was the most advanced drug candidate in the pipeline, there are two others in development; NYX-783 is ready to begin a phase 2 trial evaluating its potential to treat post-traumatic stress disorder, and NYX-458 is currently being evaluated in a phase 1 trial as a potential treatment for Parkinson’s disease.
Disappointed by the trial results, Cowen’s top analyst Ritu Baral shares his two cents on the matter: “As discussed in our preview for this trial , we were cautiously optimistic for ‘2925s potential to meet the primary endpoint based on mechanistic proof-of-concept of the compound’s activity in preclinical pain model studies and interim analysis from the Phase 2 exploratory trial of ‘2925 in fibromyalgia patients. Recall, the interim analysis from 11 patients who completed the fibromyalgia study showed NYX-2925 met its primary mechanistic endpoint of reduction in combined glutamate and glutamine levels (Glx) and reduced connectivity in certain key brain areas as assessed by fMRI.”
“The future of APTX now heavily relies on the complete data from the exploratory Ph2 ‘2925 fibromyalgia trial that will read out in 1H19. We do not believe the failure of ‘2925 gives readthrough to the rest of the APTX NMDAr pipeline comprised of NYX-783 in Ph2 development for PTSD and NYX-458 in Ph1 development for Parkinson’s disease cognitive impairment,” the analyst added.
Overall, Baral remains bullish on Aptinyx shares with an Outperform rating. Why should you trust Baral’s opinion? According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Baral has a yearly average return of 25.3% and a 46.5% success rate. the analyst is ranked #55 out of 5149 analysts.
Aptinyx has a few disappointed bulls out today as the stock collapses. According to TipRanks, out of 3 analysts polled in the last 3 months, all 3 are bullish on APTX stock. With a return potential of 537%, the stock’s consensus target price stands at $36. (See APTX’s price targets and analyst ratings on TipRanks)