Clinical-stage biopharmaceutical firm Longboard Pharmaceuticals (NASDAQ:LBPH) got the new year off to the best start possible with a dramatic run. Earlier Tuesday morning, management disclosed positive topline data for its therapeutic bexicaserin, which addresses seizures in patients with developmental and epileptic encephalopathies (DEEs). Subsequently, LBPH stock popped 175% before gaining over 200% heading into the early afternoon session.
According to the accompanying press release, the encouraging data stemmed from Longboard’s Pacific study evaluating bexicaserin, a potentially best-in-class and highly selective novel 5-HT2C receptor superagonist for seizures tied to a broad range of DEEs. Bexicaserin is administered orally. Further, the trial involved 52 participants ages 12 to 65 enrolled at 34 study sites across the United States and Australia.
Primarily, the study centered on evaluating the safety, tolerability, efficacy and pharmacokinetics of bexicaserin. Notably, the median change in countable motor seizure frequency — the primary efficacy endpoint — compared to baseline data came out to a decrease in seizures of 53.3%. That compared favorably to a 20.8% decrease in seizures for the placebo-receiving group.
What’s more, patients with Dravet Syndrome (DS) saw a median seizure reduction of 72.1%. Further, sufferers of Lennox-Gastaut Syndrome (LGS) benefited from a 48.1% reduction. Finally, patients belong to other DEE categories witnessed a 61.2% median reduction.
LBPH Stock Rises on Strong Underlying Implications
Beyond the efficacy component, the other factor bolstering sentiment for LBPH stock was the underlying therapeutic’s favorable tolerability results. Per the press release, “[m]ost participants (85.7%) in the bexicaserin treated group (n=35) that started the maintenance period tolerated the highest dose (12 mg).” The most common adverse events (AEs) were somnolence, decreased appetite, constipation, diarrhea and lethargy.
On the other hand, three participants reported a serious adverse event (SAE). These were an ankle fracture, greater severity constipation and increased seizures. However, the study reported zero fatal incidents. Overall, nine participants discontinued participating in the bexicaserin study due to an AE. However, 100% of the participants who completed the study elected to participate in an ongoing 52-week open-label extension study.
Looking ahead, Longboard will start preparing for a global Phase 3 program. Under this late-stage category, studies will be conducted at multiple centers with hundred to several thousand participants.
Undergirding further excitement for LBPH stock is the prospect for developing viable therapeutics for neurological conditions via G protein-coupled receptors (GPCRs). In the Pacific study, the 5-HT2C receptor superagonist was bound to and activated the 5-HT2C receptor, a type of GPCR.
Multiple studies have pointed out that GPCRs play important roles in the regulation of neuronal excitability. Therefore, Longboard – which specializes in GPCR research — provided affirmation of this approach’s viability.
Why It Matters
Notably, Wall Street analysts within the past three months of coverage rate LBPH stock as a unanimous strong buy. Further, the average price target comes out to $22.40. Obviously, with today’s dramatic rise, implied forward upside is limited. Still, there’s room for projected growth of nearly 24%.
On the date of publication, Josh Enomoto 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.
