NEW YORK (AP) -- Shares of Coronado Biosciences Inc. climbed Monday after the drug developer gave it second-quarter update.
THE SPARK: The company said it finished enrolling patients in mid-stage trial of TSO, or CNDO-201, as a treatment for Crohn's disease. It expects to report results from the study in the fourth quarter. Coronado will report interim results from another trial at around the same time.
Coronado is studying TSO as a treatment for Crohn's disease, ulcerative colitis, multiple sclerosis, and other conditions. The company is also studying an experimental cancer drug called CNDO-109.
THE BIG PICTURE: TSO stands for Trichuris suis ova. Trichuris suis is a type of parasitic worm found in pigs, and TSO are the eggs of the worm. Coronado is studying TSO as a treatment for a variety of autoimmune conditions because the worm can affect the human immune system and it may reduce symptoms of those diseases. Coronado said the worm does not multiply in humans and can briefly colonize humans without causing disease symptoms before it is cleared from the body.
Coronado said it lost $10.7 million, or 38 cents per share, the second quarter. A year ago the company took a loss of $6.5 million, or 34 cents per share. The Burlington, Mass., company does not have any approved drugs and it reported no revenue. Coronado took a larger loss because it spent more money developing its experimental drugs.
Analysts expected a loss of 31 cents per share, according to FactSet.
THE ANALYSIS: Roth Capital Partners analyst Joe Pantginis said he expects Coronado to report positive results from the Crohn's disease trials. He rates the company's shares "Buy" with a price target of $24.
SHARE ACTION: Coronado Biosciences stock advanced $1.82, or 22.1 percent, to $10.04 in afternoon trading. As of Friday's close, the shares had risen 95.6 percent in 2013.