Biotechnology company Actinogen Medical Limited’s (ASX: ACW) lead compound Xanamem has failed to demonstrate adequate efficacy in improving cognition in mild Alzheimer’s disease. In an update provided on 7 May 2019, the company announced the results of its Phase II Alzheimer’s Disease Trial in which it has informed that the primary and secondary endpoint measures had not demonstrated statistical differences between Xanamem 10mg and placebo.
Following the release of the results, the share price of the company crashed by 66.667% during the intraday trade (AEST 2:15 PM).
As per the initial data base of XanADu, 10 mg daily dose of Xanamem is safe and it is having the ability to effectively inhibit cortisol production. Further, the company believes that higher doses and longer treatment duration may be required to effectively demonstrate the drug’s potential to improve cognition in Alzheimer’s disease.
The company’s development program is going to provide greater insight into Xanamem’s safety and its activity on cortisol production in the brain help with the ongoing fight to find new effective therapies for the treatment of Alzheimer. It is expected that the initial results from these studies will be read out by the end of June and will provide important data to further inform and refine Xanamem’s ongoing clinical development program.
In its announcement, the Company has announced that it is extremely grateful to the patients and their carers who participated in XanADu, as their involvement has helped generate important clinical data on the treatment of Alzheimer’s disease with Xanamem and for the ongoing development of this drug.
As per the company’s CEO Dr Bill Ketelbe, XanADu results are certainly encouraging. While 10 mg Xanamem was proven to be a clinically effective dose in Alzheimer’s disease, the safety and pharmacodynamic effects observed demonstrate potential that higher doses and a longer treatment duration of Xanamem may be efficacious.
The Company is currently confident in the relationship between raised cortisol and cognitive impairment. As per the company’s announcement, the inhibition of cortisol production in the brain with Xanamem represents a compelling approach to treating cognitive impairment in Alzheimer’s and other neurological diseases, such as bipolar disorder and schizophrenia.
Alzheimer’s disease is currently a major health crisis with addressable market worth over US$7.5bn with unmet needs and potential upside. If the company is able to find a better treatment option for this disease it will be a very significant development for the company.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. At the time of writing, i.e., on 7 May 2019 AEST 2:15 PM, the stock of the company was trading at a price of A$0.016, down 66.667% during the day’s trade with the market capitalisation of ~A$53.72 Mn. The stock has provided a year till date return of 6.67% & also posted returns of 4.35%, -17.24% & -11.11% over the past six months, three & one-month period respectively. It had a 52-week high price of $0.066 and touched 52 weeks low of $0.014, with an average volume of ~1,753,612.
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