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Shares of biotechnology firm Destiny Pharma (LON: DEST) are rallying on Monday after the company announced positive top-line results from its Phase 2b clinical study testing its XF-73 nasal gel as a new product for the prevention of post-surgical infections.
Destiny Pharma’s share price is trading 22% higher at 195p after initially climbing to 250p after the announcement.
The company said that the primary efficacy endpoint was met with an exceptionally high statistical significance with no treatment-related safety issues.
XF-73 achieved a 99.5% reduction in S. aureus bacterial nasal carriage, which is a very effective reduction by accepted clinical measures, said Destiny.
There was also a greater than 99% reduction compared to placebo in the same patient population.
Full results will be published in due course.
“There is a global need for better treatments such as XF-73, which has been awarded Qualifying Infectious Disease Product (QIDP) and Fast Track status by the US FDA,” Destiny Pharma said.
The AIM-listed company now plans to discuss possible phase 3 clinical study designs with regulatory bodies, including the US FDA.
They believe there is a significant commercial opportunity for XF-73 in the hospital setting, which could generate peak annual product sales of up to $1 billion in the US alone.
“We are delighted with these excellent results. We have delivered strong confirmation from this Phase 2b study of the potential of XF-73 to prevent post-surgical infections such as MRSA caused by the bacteria Staphylococcus aureus,” commented Neil Clark, CEO of Destiny Pharma.
“There is a significant global commercial opportunity for XF-73 nasal gel to help prevent hospital infections and this excellent data supports the proposed target product profile for XF-73 as being a safe, fast, effective decolonising nasal gel that is cost-efficient and easy to use in standard surgery protocols,” added Clark.
Destiny Pharma shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Destiny Pharma shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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