Will Good News Boost This Small-Cap Drug Company's Stock Even Higher?
Shares of CymaBay Therapeutics (NASDAQ: CBAY) have climbed nearly 143% since last week after it got great news about its orphan drug, seladelpar.
A phase 2B trial for the drug to see how it did against nonalcoholic steatohepatitis (NASH, or liver inflammation not caused by alcohol) had been sidelined by the Newark, Calif., clinical-stage biopharmaceutical company since November due to safety concerns after study pathologists found tissue damage in the livers of participants. Last week, however, the company announced that a panel of independent experts unanimously overturned earlier findings that seladelpar caused liver damage. The panel supported reinitiating clinical development of the drug, pending approval by the U.S. Food and Drug Administration (FDA).
"While we have not yet discussed full results from our investigation nor any of the panel's conclusions with the FDA, we are planning to reengage with the agency as quickly as possible," CymaBay President and CEO Sujal Shah said.
Source Fool.com
