Small biotech stocks are often considered “binary” lottery-ticket type events, with either a small chance of big upside, or a much greater probability of nothing at all. These stocks can soar to heights of euphoria and crash to depths of depression. Case in point: Shares of Idera Pharmaceuticals (NASDAQ:IDRA) dropped as much as 23% Tuesday after IMO-8400, the company’s pipeline candidate, failed in a Phase 2 clinical trial in dermatomyositis. The trial did not meet its primary endpoint of statistically significant change from baseline in the CDASI activity score versus placebo.
The objective of the multi-center, global, Phase 2, randomized, double blind, placebo-controlled trial was to assess the efficacy, safety, tolerability, pharmacokinetics (PK), pharmacodynamics (PD), disease-specific autoantibodies and immunogenicity of IMO-8400 in adult patients with dermatomyositis. The primary objective of the trial was to assess the change from baseline in the Cutaneous Dermatomyositis Disease Area and Severity Index (“CDASI”) activity score, an outcome measure of skin disease severity, versus placebo.
30 eligible subjects were randomized to 1 of 3 treatment groups to receive once weekly subcutaneous injections of 0.6 or 1.8 mg/kg of IMO-8400 or placebo for up to 24 weeks. The mean CDASI activity score was in the severe range in all three cohorts despite background treatment with immunosuppressive drugs and/or systemic corticosteroid drugs in 17 of the 30 subjects.
The company would like to recognize the efforts of the investigators from this trial and importantly the patients who entered this trial in the hope that IMO-8400 may have been an effective treatment for their disease.
According to TipRanks, two analysts have open positions on the IDRA stock, both of which are Buy ratings. The average 12-month price target on the stock is $4, marking a 123% potential upside based on where the stock is currently trading.