Journey Medical (DERM) to Post Skin Disease Data, Stock Rises 26%
Journey Medical Corporation DERM announced that it expects to report top-line results from its two late-stage MVOR-1 and MVOR-2 studies, evaluating DFD-29 40 mg to treat moderate to severe papulopustular rosacea (PPR), in the week of Jul 10, 2023. Shares of the company gained about 26% on Monday, in response to the news.
DFD-29 is a modified release oral minocycline capsule that Journey Medical is developing for the treatment of PPR in collaboration with Dr. Reddy’s Laboratories Ltd RDY. DERM signed a collaboration agreement with Dr. Reddy’s in June 2021, to obtain global rights for the development and commercialization of DFD-29.
Per the terms of the agreement, RDY is entitled to receive payments of up to $158 million, based on the achievement of certain developmental and commercial milestones for DFD-29. Furthermore, Dr. Reddy’s is also eligible to receive a 10-20% royalty on net sales of the product.
Year to date, shares of Journey Medical have gained 4.2% against the industry’s 2.7% fall.
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The two phase III studies, MVOR-1 and MVOR-2, are evaluating DFD-29 compared with Oracea (doxycycline) 40 mg and placebo in Rosacea-1 and Rosacea-2, respectively. The company expects the data from these two studies to support respective regulatory filings in the United States and EU.
DERM has reportedly enrolled a total of 640 adult patients with moderate to severe PPR, wherein, one trial enrolled patients in the United States and the other enrolled patients in both the United States and Europe. The patient populations in both studies are divided into three cohorts in the ratio 3:3:2, receiving either of the three doses of DFD-29 40 mg, Oracea 40mg or placebo once daily for 16 weeks.
The primary objective of the MVOR-1 and MVOR-2 studies is to evaluate the safety, efficacy and tolerability of DFD-29 compared with placebo for the treatment of PPR. The secondary objective of the studies is to evaluate the safety, efficacy and tolerability of DFD-29 compared with Oracea (Doxycycline Capsules, 40 mg).
Rosacea is a chronic inflammatory skin condition exhibiting symptoms like deep facial redness, acne-like inflammatory lesions (papules and pustules) and spider veins (telangiectasia). Approximately, 16 million people in America suffer from this skin condition while the estimated number of people suffering from rosacea worldwide is a whopping 415 million.
Rosacea affects adults mostly in the age group of 30-50 years. It severely affects the quality of life of patients by lowering their self-confidence and self-esteem.
Journey Medical Corporation Price and Consensus
Journey Medical Corporation price-consensus-chart | Journey Medical Corporation Quote
Zacks Rank and Stocks to Consider
Journey Medical currently has a Zacks Rank #3 (Hold).
A couple of better-ranked stocks from the same industry are Akebia Therapeutics AKBA and AlloVir ALVR, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the Zacks Consensus Estimate for Akebia Therapeutics’ 2023 loss per share has narrowed from 45 cents to 28 cents. During the same period, the estimate for AKBA’s 2024 loss per share has narrowed from 25 cents to 16 cents. Year to date, shares of the company have gained by 56.3%.
AKBA beat estimates in three of the trailing four quarters and missed the mark on one occasion, delivering an average earnings surprise of 41.41%.
In the past 90 days, the Zacks Consensus Estimate for AlloVir’s 2023 loss per share has narrowed from $1.90 to $1.80. During the same period, the estimate for ALVR’s 2024 loss per share has narrowed from $1.98 to $1.89. Year to date, shares of the company have plunged 36.8%.
ALVR beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 9.78%.
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