EBIO Freefalls on Missed Trial Data

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EBIO Freefalls on Missed Trial Data

Eleven Biotherapeutics , Inc. (NASDAQ: EBIO) announced news of failed key drug data on Monday and sent shares of EBIO into freefall opening over 70% lower at $2.89 from a close on Friday of $11.97. The Company revealed to investors that the Phase III study of its primary drug candidate which treats forms of eye disease had failed.

ebio

Chief Executive Officer, Abbie Celinker noted, “We are disappointed that our Phase 3 study in dry eye disease did not meet its primary efficacy endpoints, but we are encouraged that we continue to see a favorable tolerability profile for EBI-005. Based on these top-line results, the company does not see an immediate path forward for EBI-005 in dry eye disease, and we will not be initiating the second Phase 3 study of EBI-005 in dry eye disease that we had planned to start in the second half of this year.”

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Bottom Line

Without a doubt, this is quite a blow for EBIO as well as investors due to the failure of its lead drug candidate. Although the company does have other drugs in the pipeline, EBIO’s near term future hinged on the results of the EBI-005 Phase III study, as reflected by the plunge in the stock price after the news was released.

About Eleven Biotherapeutics

Eleven Biotherapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of protein therapeutics to treat eye diseases primarily in the United States. The company develops its therapeutics through AMP-Rx, a proprietary protein engineering platform. Its product candidates include EBI-005, a novel interleukin-1 receptor antagonist that is in Phase III clinical program for the treatment of moderate to severe dry eye diseases; and has completed Phase II clinical trial for the treatment of allergic conjunctivitis. The company’s preclinical product candidates comprise EBI-031, a novel inhibitor of the cytokine interleukin-6 for the treatment of retinal diseases, such as diabetic macular edema; and EBI-028, a novel inhibitor of the cytokine interleukin-17 for the treatment of uveitis, and other diseases of the back of the eye, such as dry age-related macular degeneration. – Yahoo! Finance

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Mike Herman Mike graduated from the Florida State University with a Real Estate and Bachelor of Finance degree and focused particularly in the field of Behavioral Finance. During his time at the Florida State University, Mike began to trade equities and quickly realized the opportunities that existed in the markets. Through trading, Mike had facilitated relationships with a few very experienced individuals who had an expertise in the private equity field. More specifically, the private funding of small cap start-up companies. After several years of successful deals as a venture capitalist, Mike made the decision to return to work as an independent trader. Throughout the past 7 years of working as an independent trader, Mike has refined his strategy to focus on news driven momentum while factoring in market sentiment and psychology with an emphasis on proper risk management. Mike possesses a unique ability to rapidly decipher critical market moving news and take appropriate action. You can contact Mike at mike@warriortradingnews.com Legal Disclaimer – This is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. Before selling or buying any stock or other investment you should consult with a qualified broker or other financial professional. The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author has no business relationship with any company whose stock is mentioned in this article nor is receiving compensation from any of the companies mentioned.

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