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Two Westlake Village biotech companies released new data from product trials, spurring stock moves and presaging capital raises to fund further research and development.
Analysts remained optimistic on Sienna Biopharmaceuticals despite an 18 percent drop in the stock June 10, after the company released results from clinical trials of its psoriasis product.
Despite the product, dubbed SNA-120, successfully demonstrating significant improvements in the trial for its treatment of itch and psoriasis, the stock continued its negative streak, closing at $1.00 on the NASDAQ. Sienna is down overall 56.90 percent year-to-date.
The market was easier on MannKind Corporation, which closed 2.5 percent above the previous day’s market close, after it released new data from various independent studies on Afrezza, its commercial inhalable insulin product. Data was announced at the American Diabetes Association’s 79th Scientific Sessions. According to the press release, Afrezza was “generally well-tolerated in pediatric patients.”
Afrezza is available by prescription and is the biopharmaceutical company’s only approved product. MannKind disclosed in its most recent quarterly financial statement, it will continue to spend significantly on commercial manufacturing and marketing of Afrezza. The company is looking to raise additional capital through licensing agreements or a public offering to continue developing its inhalable insulin powder.
Sienna is continuing its trials with the prospective enrollment of its first patient for Phase 3 of the program with SNA-120 and upon commencement is obligated to issue $18 million in shares of common stock, according to SEC filings.
“We intend to spend substantially all of our current capital resources on the clinical development of SNA-120 to advance it into and through Phase 3 development,” the company said in its most recent quarterly filings.
Sienna has disclosed its need for additional capital to successfully complete Phase 3 trials in the future and to move to development of newer product, SNA-125. Both Central Coast-based companies have yet to turn a profit and continue to run deficits.
- Contact Veronica Graff at vgraff@pacbiztimes.com
