Tetraphase Pharmaceutical (TTPH) Shares Soar on Late-Stage Trial Results
Shares of Tetraphase Pharmaceutical Inc. (TTPH) were up +6.19 or +18.65 percent to $39.38 per share in this morning's premarket, after a late-stage study found that the company's new antibiotic was as effective in treating intra-abdominal infections as Merck & Co. Inc.'s (MRK) ertapenem. Tetraphase Pharmaceutical stock closed at $33.19, up +3.17 or +10.56 percent in Wednesday's regular trading session.
Tetraphase announced yesterday that eravacycline had proven as effective in treating complicated intra-abdominal infections as Merck & Co.'s ertapenem in a late stage evaluation. In another study, ervacycline is being tested against Johnson & Johnson's levofloxacin in the treatment of complicated urinary tract infections with results expected by mid 2015.
Guy Macdonald, President and CEO of Tetraphase said in the company's press release that, "The positive results from IGNITE 1 underscore that treatment with eravacycline could help a significant number of cIAI (complicated Intra-Abdominal Infections) patients achieve a clinical cure for their difficult-to-treat Gram-negative infections, he continued saying that, "The success of this trial is an important milestone for the eravacycline pivotal program. These results, along with those from our ongoing Phase 3 IGNITE 2 trial in complicated urinary tract infections (cUTI) which are expected in mid-2015, would form the basis of regulatory submissions seeking approval for eravacycline in both indications. We continue to target a New Drug Application submission to the FDA by the end of 2015.
The company said that it would seek FDA approval of ervacycline by the end of the year and if approved, the drug would compete with treatments developed by Actavis Plc (ACT) and AstraZeneca (AZN), as well as with Cubist Pharmaceutical's (CBST) Zebraxa. Ervacycline treats drug resistant infections caused by gram resistant bacteria known as "superbugs .
Merck bid $8.4 billion for Cubist in early December shows big pharma's interest in further developing antibiotics to treat the new strains of superbugs. The renewed interest comes after years of low investment in antibiotic research by pharmaceutical companies.
Tetraphase stock closed just shy of its all-time high in active trading yesterday. The stock will open significantly higher this morning and appears that it will continue appreciating in regular trading when the stock opens. With positive results for the company's IGNITE studies, the stock looks like it could continue in uncharted territory in the near term.
Other News About Tetraphase Pharmaceutical
Analyst at Wedbush reiterates her Outperform rating and boosts price target.
Tetraphase Pharmaceuticals Added to NASDAQ Biotechnology Index
Company's stock will be added to the index effective on Monday, December 22nd.
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