Today, Atossa Genetics Inc (NASDAQ:ATOS) investors are scratching their heads as to why the stock collapsed following the news that the company's breast cancer oral treatment Endoxifen delivered positive results from its Phase 1 study.
Specifically, there were no clinically significant safety signals and no clinically significant adverse events in participants receiving oral Endoxifen. In addition, the drug was well tolerated at each dose level and for the dosing duration utilized in the study. Moreover, the drug demonstrated blood levels that have been associated with a therapeutic effect in the adjuvant setting in women with breast cancer.
That's good news for Atossa, but less good news for long-term investors. You see, according to the principle of "buy the rumor, sell the news," the major catalyst for Atossa stock to rise has now been removed, and traders who were awaiting the clinical results have now reaped all the gains they're going to get from that particular catalyst. Hence, they're selling the stock today, and a large fraction of the gains that the stock enjoyed over the past few days are now evaporating.
The Phase 1 study was a double-blind, placebo-controlled, repeat dose study of 48 healthy female subjects. Atossa assessed safety, tolerability and the pharmacokinetics of proprietary formulations of both topical and oral Endoxifen dosage forms in varying dose levels over 28 days. The study was conducted in two parts based on route of administration. Preliminary results from the topical arm of the study were announced on September 14, 2017.
Atossa Genetics is a clinical-stage pharmaceutical company, which focuses on the development of novel therapeutics and delivery methods for the treatment of breast cancer and other breast conditions. It offers ForeCYTE and ArgusCYTE diagnostic tests. The ForeCYTE Breast Health Test provides personalized information about the 10-year and lifetime risk of breast cancer for women between ages 18 and 65. The ArgusCYTE Breast Health Test offers information to help inform breast cancer treatment options and to help monitor potential recurrence.
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