Why Genfit’s stock is skyrocketing today

What happened

Actions of Genfit (NASDAQ: GNFT) soared 25% higher at 11:58 a.m. EST Wednesday. The big leap came after the company announced positive results from a Phase 2 study evaluating elafibranor for the treatment of primary biliary cholangitis (PBC), an autoimmune disease that causes scarring of the bile ducts in the liver. .

So what

The results of phase 2 of Genfit, published in the Journal of hepatology, showed that elafibranor met the primary endpoint of the study of reducing alkaline phosphatase (ALP) in patients with PBC who were previously taking ursodeoxycholic acid (UDCA) for their disease . ALP levels are a key measure in determining the severity of liver disease. The data also indicated that elafibranor was generally well tolerated.

Image source: Getty Images.

Although there are approved PBC therapies on the market (including UDCA), many patients do not benefit much from these existing drugs. The latest clinical results from Genfit may increase the chances that elafibranor will become another important treatment for PBC.

The drugmaker launched a pivotal Phase 3 study of elafibranor for the treatment of PBC in September 2020. Carol Addy, Chief Medical Officer of Genfit, said the results announced today “confirm the rationale for the evaluation of our compound in this disease. [PBC] in a pivotal phase 3 trial. “

Now what

It may take some time for the biotechnology stocks benefits from another catalyst linked to the PBC indication. Genefit does not expect to release the first data from its pivotal, advanced study of elafibranor as a second-line treatment for PBC until Q1 2023.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

About Roberto Frank

Check Also

5 Types of Investments Americans Use to Save for Retirement

Dean Drobot / Shutterstock.com We all want a big nest egg. How we get one …

Leave a Reply

Your email address will not be published.