NEW YORK, NY / ACCESSWIRE / November 27, 2018 / Biotech stocks Novelion and ReShape were both very active on Monday. While Novelion didn’t have any news, the company's share prices saw a breakout. ReShape announced several encouraging developments including data regarding the treatment of type 2 diabetes mellitus but saw its shares sold off.
Novelion Therapeutics Inc. shares were up 7.61% at the close yesterday with roughly 2% more seen in after-hours trading in gains. There was no significant news from the company yesterday but it was last week that the biopharmaceutical company said that General Counsel, Benjamin Harshbarger, has been appointed as interim CEO, reporting to Novelion’s Executive Chair, Mark Corrigan, M.D., effective immediately. Dr. Corrigan stated, “In the past year, we have made substantial progress in the turnaround of Novelion , and on behalf of the Board of Directors, I’d like to thank Jeff for his dedication to this mission. Importantly, Ben has played a critical role in these initiatives, including the recent loan facility secured by our operating subsidiary, Aegerion Pharmaceuticals, Inc. (“Aegerion”), which we believe positions Aegerion to achieve a more comprehensive capital restructuring - our primary near-term goal. Ben is a long-tenured and trusted leader among Novelion’s employees, and under his guidance we are well-positioned to continue the positive momentum towards fixing our capital structure and driving growth.”
ReShape Lifesciences Inc. shares were plummeting on Monday to close the day down 19.20%. The stock saw colossal trading volume of about 26 million shares compared to an average trading volume of just under 570,000 shares. The developer of minimally invasive medical devices to treat obesity and metabolic diseases announced new data that was presented during a poster presentation at the recent ObesityWeek 2018 conference. Data presented highlighted results of experiments conducted by the ReShape in obese type 2 diabetic rats and in a type 2 diabetic pig model. The results show a significant reduction in blood glucose of the diabetic pigs as well as the rats. "If this data can be replicated and translated into human studies, this would be a genuinely new approach for treatment of type 2 diabetes mellitus," remarked Dr. Charles Billington, MD, Chief, Section of Endocrinology and Metabolism, Minneapolis VA Health Care System and lead study investigator. Per the press release, "the studies suggest a novel, reversible and adjustable neuromodulation technique for the potential treatment of patients with type 2 diabetes mellitus." Separately the company also said it has entered into definitive agreements with two healthcare focused institutional investors for the purchase of 8,000,000 shares of its common stock and warrants at a purchase price of $1.25 per share and associated warrants, for gross proceeds of approximately $10 million, in a registered direct offering. The closing of the offering is expected to take place on or around Wednesday.
Our Actionable Research on Novelion Therapeutics Inc. (NASDAQ: NVLN) and ReShape Lifesciences Inc. (NASDAQ: RSLS) can be downloaded free of charge at The Market Edge.
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