Vitae Pharmaceuticals Inc (NASDAQ:VTAE) witnessed unexpected growth in share prices on Thursday after it announced the trial results of experimental medication. As per the reports, Vitae’s shares plunged by a whopping 85.16% in intraday trading to touch a higher limit of $7.61. At the end of the day, shares closed 65.21% higher at $6.79 per share.
Insights of Matter
Vitae has been trying hard to come up with an experimental medication for psoriasis for a long time. On Wednesday, it announced that the Phase 2a “proof-of-concept clinical trial” for psoriasis was successful. All the top line results of the trial were positive. Reports claim that the company was working on an oral medication that could treat more than one autoimmune disorders, including psoriasis at a time without any hassle. Psoriasis is a common health issue in which skin cells form and build up scales as well as itchy, dry patches.
As part of this trial, Vitae conducted a randomized, placebo-controlled, double-blind trial to check whether the medication VTP-43742 was safe, effective and was good enough to be tolerated by psoriasis patients who were given multiple doses regularly for a period spanning over four weeks.
The results of this trial showed that those psoriasis patients who received 700-milligram dosages witnessed 30% reduction in their health issue while those who got 350-milligram dosage experienced 24% reduction in their psoriasis. At this time, the company doesn’t want to leave any stone unturned to make these trials successful. It’s planning to conduct another trial spanning over 16 weeks in the second half of 2016 to get more insightful results than this time.
Before the announcement of these results, it was being traded 77% down from its December 28 price. The senior management team seeks to continue this progress in the coming months and hopes that Vitae will live up to customers and shareholders’ expectations.