Trial Results for AVI BioPharma’s Eteplirsen Represents a Trading Catalyst.
AVI BioPharma is working on a treatment for Duchenne Muscular Dystrophy (DMD) called Eteplirsen. The disease is caused by a mutation in the dystrophin gene is which is important in muscle function. Eteplirsen is undergoing a phase IIb clinical trial to test if there is improvement in the dystrophin gene expression. On March 12, 2012 the company announced that they will be presenting trial results at the American Academy of Neurology Emerging Science program on April 25, 2012.
This represents a good short term trading catalyst as the stock may increase in value as investors anticipate the trial results. It seems very likely that the results will be favorable for a couple reasons. First, a company usually tries to get good results into a conference as quickly as possible. Why would AVI BioPharm executives want to announce to the world at a major scientific conference that their treatment doesn’t work? It is most likely the case that they are excited about the results and want to get the attention of the medical and investor communities at a high profile conference. If the results were poor they would probably just issue a press release instead of rush to get a spot in the “Emerging Science” program at an American Academy of Neurology meeting.
Second, AVI BioPharma released promising eteplirsen clinical trial results from a study that was completed in the United Kingodom. The results published in The Lancet showed statistically significant and dose-dependent improvements in dystrophin expression in patients and data to suggest that the underlying disease process was beneficially modified.
More recently in January 2012 an independent Data Safety Monitoring Board, reviewed the 12-week biopsy data from the phase IIb study of Eteplirsen and determined that it was safe to continue with the trial as planned.
AVI BioPharma’s market capitalization is about $150 million, and as of year end 2011 the company has approximately $40 million is cash and no debt. The Eteplirsen program has been granted orphan drug status by the FDA. The drug has also been given fast track status as their is no cure for DMD with 1 in every 3,500 boys born with DMD worldwide. The Eteplirsen program is providing hope to DMD patients and may prove to beneficial to AVI BioPharma investors.
