Why Isis Pharmaceuticals, Inc. Shares Briefly Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Isis Pharmaceuticals , a biopharmaceutical company focused on developing therapies using its proprietary antisense drug development platform, vaulted higher by as much as 12% earlier this morning after reporting positive results for ISIS-GCGR in a mid-stage type 2 diabetes study. Shares have since given back the bulk of their gains and are now up less than 4% as of this writing.
So what: According to Isis' early morning press release, "the absolute mean reductions in hemoglobin A1c (HbA1c) were greater than 2 percentage points (p=0.001) and greater than 1 percentage point (p=0.001) in the 200 mg and 100 mg cohorts, respectively, compared to baseline after 13 weeks of treatment." In addition to rapid effectiveness, Isis also notes an increase in GLP-1 levels which would indicate preservation of pancreatic functions that could enhance insulin secretion, ultimately helping to maintain glycemic balance. Given the statistically significant reduction in HbA1c levels Isis plans to optimize the dose and move forward with additional studies.
Now what: For a number of other companies whose type 2 diabetes therapies have been working their way through clinical trials recently, an HbA1c reduction of 0.5%-1% was fairly normal and impressive. These results, however, with mean reductions of 1%-2% appear to be above and beyond anything we've been privy to recently. Early indications demonstrated that ISIS-GCGR is well-tolerated and also doesn't negatively affect blood pressure, which are all key safety components that the Food and Drug Administration will hone in on. Keep in mind that Isis is still in the "dose-optimizing" state, so we're nowhere near the new drug filing stage or anything, but I believe these are incredible results worth keeping your eyes on. I've already encouraged investors to watch Isis simply because of its 30-plus compounds in development, which are either in-house, such as ISIS-GCGR, or collaborative. Today's news merely gives you an even bigger reason to add Isis to your watchlist.
Isis shares may have soared today, but even it could struggle to keep pace with this top stock over the long run
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The article Why Isis Pharmaceuticals, Inc. Shares Briefly Jumped originally appeared on Fool.com.Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. The Motley Fool recommends Isis Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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