This Biopharma Stock Spiked 50%...So We Talked With An Exec To Discover Why
Shares of Dyax Corp. (NASDAQ: DYAX) gained as much as 55 percent in early trading on Wednesday after the company announced positive results from an early-stage test of its drug DX-2930 on treatment of hereditary angioedema (HAE).
The market clearly loved the results, and Benzinga had the chance to speak with Dyax's Executive Vice President of R&D, Dr. Burt Adelman, about what the results mean for the company.
According to Dyax's press release, the HAE attack rate for the 300 mg dose group during the primary efficacy interval was 0 percent. The 400 mg dose group also showed an 88 percent attack rate reduction compared to placebo.
"These results are not necessarily better than we expected," he told Benzinga, "but they certainly seem to be better than the market expected."
Adelman believes that the market was anticipating efficacy rates similar to the oral agent being developed by BioCryst Pharmaceuticals (NASDAQ: BCRX), which utilizes a mechanism of action similar to DX-2930 and has demonstrated less than 40 percent reduction in attack rates.
"I think the market expected a really good outcome...would be a 50 to 60 percent reduction," Adelman explained when asked about the jump in share price.
The DX-2930 Market
HAE is a relatively rare condition, affecting only about 4500 people in the U.S., according to Dr. Adelman. While he explained that it's too early in the development process to estimate a market size for DX-2930, he did mention that the competitors' products in the market are "very expensive."
In a note released on Wednesday morning, Bank of America analysts project $530 million in U.S. sales for the drug in 2029.
Dyax representatives intend to meet with the FDA within the next few months to officially propose a clinical trial.
"We believe that these data should serve as proof-of-concept and provide adequate data on what dose or range of doses to take into a clinical trial," Adelman stated.
According to the executive, the FDA's input will pave the way for a clearer timeline for DX-2930 and a potential path forward for the development process.
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