Little-known emerging biopharmaceutical company Vivani Medical (NASDAQ:VANI) saw its market value increase dramatically on Wednesday. Catapulting sentiment was the company’s weight-loss solution, which offered compelling results compared to mainline weight-loss therapeutics. Given Vivani’s potentially more convenient approach, VANI stock has attracted intense interest.
According to a Benzinga report, Vivani released preclinical data on weight loss effects for NPM-115, its miniature, twice-yearly exenatide subdermal implant under development for chronic weight management. In the study involving obese mice, the implant “generated weight loss of approximately 20% compared to a sham implant control after a 28-day treatment duration.”
Notably, Vivani stated that the weight loss is comparable to that observed in mice treated with the popular Ozempic and Wegovy injections. These are the trade names under Novo Nordisk (NYSE:NVO) for products containing semaglutide, an injectable drug initially targeted to treat Type 2 diabetes.
Further, Vivani conducted a second study involving healthy rats utilizing NPM-119, a lower-dose version of the subdermal implant. After 15 weeks of treatment, researchers observed that the rats with the implant featured body weights that were approximately 25% lower than that of a vehicle implant control group.
VANI Stock Soars on Broader Positive Implications
Following the disclosure of the results, VANI stock soared more than 300%, only slightly giving up ground in the afternoon. Fundamentally, interest spiked in the emerging biopharma because the underlying implant may offer a compelling alternative to Ozempic and Wegovy.
Although Novo Nordisk commands the advantage of approval from the Food and Drug Administration (FDA) regarding the aforementioned therapeutics, they’re not exactly convenient. Both typically require once-weekly injections, and they can be pricey. Without insurance, Wegovy costs $1,627 per carton, while Ozempic costs $907 per carton.
While Vivani gave no indication about the costs tied to its subdermal implant, the approach — which only requires a twice-yearly procedure — may be viewed more favorably than the current popular therapeutics.
In addition, many questions are arising about Ozempic and Wegovy. According to Johns Hopkins University, doctors don’t know exactly how the drugs work. Because the precise mechanisms for how the therapeutics regulate appetite are unknown, some concerns exist.
Even more problematic, the injectable drugs have been known to impose side effects. Per Johns Hopkins, half or more patients experience nausea. Rare but serious side effects include pancreatitis, which is inflammation of the pancreas.
In fairness, Vivani’s implant safety profile is not quite clear. However, the possibility of a viable alternative has been more than enough to boost VANI stock.
Why It Matters
Currently, no analyst covers VANI stock. However, on Nov. 15 of last year, Maxim Group’s Naz Rahman recognized Vivani’s potential early, rating shares a “buy” with a $4 price target. That said, it’s a volatile investment, with the company losing 78% of market value over the past five years.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
