Cerevel Therapeutics (NASDAQ:CERE) stock is up monumentally, thanks to some positive results in a breakthrough trial. It appears that a therapy by the company developed for the treatment of schizophrenia is nearing the start of the next phase, a hopeful sign for getting it to market. Investors are taking notice of the 125% gain for CERE stock.
Cambridge-based Cerevel Therapeutics has been tackling schizophrenia treatment recently, and its newest trial results are showing that it is heading in the right direction. The results come from the testing of the company’s CVL-231 antipsychotic drug.
The CVL-231 treatment seeks to reduce the release of dopamine in patients without directly targeting dopamine receptors. It does this by manipulating the activation of M4 receptors in the brain.
Over a six-week trial period, subjects were administered either a once- or twice-daily dosage of CVL-231, or a placebo. At the end of the trial, the company noticed a statistically significant reduction of “psychotic activity” in the subjects taking CVL-231 as compared to those taking the placebo.
Also of note is the optimistic information regarding side effects. According to the company’s press release, the drug was well tolerated. Side effects, including headaches and heart rate and blood pressure increases, were relatively stable between both those taking CVL-231 and those taking the placebo.
CERE Stock Sees Gigantic Gains After Posting Trial Results
The results of this trial are very positive for the company. Chief Scientific Officer of Cerevel, Dr. John Renger, commented on the results, reaffirming the company’s belief that it is on the right track:
“We are extremely encouraged with these results, which we believe support our hypothesis that a targeted muscarinic therapy that is highly selective for M4 receptors could deliver clinically meaningful benefit in the treatment of schizophrenia.”
The next step, according to the company, is moving the drug into more robust trials.
As a result of the positive press release, CERE stock is flying high today. In fact, the stock is more than doubling in value, rocketing nearly 125% on today’s trading session. Trading volume is up far above the average; over 76 million shares of CERE stock are swapping hands, against the 300,000 daily average.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.