Stock Update (NASDAQ:ADHD): Here’s Why Alcobra Ltd Shares Are Crashing 56%


Tuesday turned out to be a nightmare for shareholders of Alcobra Ltd (NASDAQ:ADHD) after the biopharmaceutical company reported the top-line results from MEASURE, its second Phase 3 clinical trial for the investigational product Metadoxine Extended Release (MDX) for the treatment of ADHD in adult patients. In this trial, MDX did not meet the primary endpoint of demonstrating a statistically significant difference from placebo in the change from baseline of the investigator rating of the Conners’ Adult ADHD Rating Scales (CAARS). The company indicated that with these results, development of MDX for adult ADHD in the U.S. will cease.

Reacting to the news, Alcobra shares are diving nearly 56% to $0.84 in early trading.

As previously communicated, the top-line data analysis was conducted on the Full Analysis Set (n=283), which includes all randomized subjects with at least one post-baseline efficacy assessment. Consistent with previously conducted studies, MDX was generally well tolerated.

“We are exceedingly disappointed with these top-line results. In the coming weeks, the Company intends to review the full data set from MEASURE. Consequently, we will evaluate our options and communicate our strategic plan to investors,” stated Dr. Yaron Daniely, President and CEO of Alcobra. “We wish to reiterate our sincere appreciation to all of the patients, investigators, and others who aided us in conducting this study.”

On the ratings front, Alcobra has been the subject of a number of recent research reports. In a report issued on January 10, Oppenheimer analyst Jay Olson reiterated a Hold rating on ADHD. Separately, on November 16, Jefferies’¬†Biren Amin reiterated a Buy rating on the stock and has a price target of $6.00.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jay Olson and Biren Amin have a yearly average return of 2.2% and 3.7% respectively. Olson has a success rate of 48% and is ranked #2146 out of 4349 analysts, while Amin has a success rate of 48% and is ranked #1070.

Overall, one research analyst has rated the stock with a Sell rating, 3 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $3.30 which is 73.7% above where the stock closed last Friday.

Alcobra Ltd. engages in the research, development, and market of pharmaceutical productsfor the treatment of central nervous system disorders and cognitive dysfunctions. Its portfolio includes Metadoxine Extended Release to treat Attention Deficit Hyperactivity Disorder and Fragile X Syndrome.

 

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