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Summary
- The biopharmaceutical company’s stock more than doubled on Tuesday’s trading.
- Cerevel announced positive results from the clinical trial of its M4-selective PAM CVL-231 in adult schizophrenia patients.
- The company is also offering 14 million shares in an underwritten public offering.
Cerevel Therapeutics Holdings Inc. (NASDAQ:CERE) stock jumped over 140 percent and rallied to its 52-week high on Tuesday after the company announced positive phase 1b clinical trial results of its CVL-231 drug in schizophrenia patients.
The stock ended Tuesday’s trading at US$29.69, up 136.2 percent. It rallied up to US$31.09 yesterday from a 52-week low of US$9.
The company has US$3.78 billion in market value. Cerevel’s stock returned over 73 percent year to date. The shares fell over 5 percent in the pre-market trading on Wednesday.
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Meanwhile, the biopharmaceutical company has started a public offering of 14 million shares through underwriters.
What is CVL-231 and what does the clinical trial results say?
On Tuesday, Cerevel, which was spun out of Pfizer in 2018, announced positive results from the Phase 1b clinical trial of its M4-selective Positive Allosteric Modulator CVL-231 in adult schizophrenia patients.
Schizophrenia is a mental illness, which impacts the patient’s thoughts, feelings and behaviour. The symptoms include delusions, hallucinations and thought disorders.
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Source: Pixabay
Cerevel’s CVL-231 is a treatment for schizophrenia. It targets the activation of the M4 receptor in the brain to reduce dopaminergic activity without direct dopamine receptor antagonist activity.
According to the company, CVL-231 is the only selective M4 receptor PAM that is currently being developed.
Cerevel said that a single dose of CVL-231 daily showed significant antipsychotic activity. Patients who took a single dose of 30 mg of the medication daily showed a mean reduction of 12.7 points in the symptom severity measurement at six weeks, compared with the placebo group.
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Cerevel will now advance the medication to its Phase 2 development. It will also evaluate the more related indications, including dementia-related psychosis.
Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.
