Company Update (NASDAQ:CERC): Here’s Why Cerecor Inc Shares Are Up 19% Today
It’s been quite a day for Cerecor Inc (NASDAQ:CERC) investors. The company’s shares rose nearly 30% before losing some ground. The positive stock price movement came after competitor Alkermes Plc (NASDAQ:ALKS) announced positive top line results for ALKS 5461, a pipeline drug for the adjunctive treatment of major depression.
Cerecor’s lead compounds include CERC-301, which is being developed as an adjunctive medication in patients with severe major depressive disorder (MDD) who are not responding to their current antidepressant treatment.
Cerecor initiated a Phase 2 clinical trial of CERC-301 in November 2013. The 135-patient, placebo controlled trial consisted of MDD subjects who were resistant to SSRI or SNRI treatment and had recent active suicidal ideation. Patients were treated for 28 days with 8 mg/day of CERC-301 and the primary outcome was the change in the Hamilton Depression Rating Scale (HDRS) on day 7. In March 2015, Cerecor announced that the 8 mg dose used in the study did not meet the primary objective, however the drug was shown to be safe and well-tolerated. In a separate pharmacokinetic/pharmacodynamics study, 48 patients were safely treated with daily doses of CERC-301 of up to 20 mg, thus indicating that higher doses of CERC-301 could be utilized in future clinical trials. The company decided to go ahead with CERC-301 and topline results are expected in November 2016.
On the ratings front, H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on CERC, with a price target of $15, in a report issued on September 23. The current price target represents a potential upside of 277.8% from where the stock is currently trading. According to TipRanks.com, Selvaraju has a yearly average return of -0.9%, a 38.7% success rate, and is ranked #3300 out of 4183 analysts.
Cerecor, Inc. is a clinical stage biopharmaceutical company focuses in medical development. It involves in the discovery, manufacture and commercialization of prescription for neurological and psychiatric disorders. It products include CERC-301, CERC-501 and CERC-406.