Today, investors in Reviva Pharmaceuticals (NASDAQ:RVPH) and RVPH stock are seeing explosive gains of more than 90% at the time of writing.
Today’s move nearly doubles the clinical-stage biopharmaceutical company’s market capitalization to more than $70 million. As a small-cap biopharma play, such moves aren’t terribly out of the ordinary, especially when companies like Reviva report significant news.
Let’s dive more into the announcement that has Reviva shares soaring today.
Today, Reviva announced details of its Phase 2 clinical trial for the company’s acute schizophrenia drug. These results were overly positive, with the following key points noted by Reviva’s management team:
- The candidate “met endpoints for safety and efficacy in 234 patients’ clinical trial with Acute Schizophrenia or Schizoaffective Disorder.”
- According to Reviva, it also “met primary endpoint of reduction in Positive and Negative Syndrome Scale (PANSS) total score for Schizophrenia.”
- The candidate, RP5063, also “mitigated positive symptoms and negative symptoms.”
- Reviva says it also “improved social functioning and cognition.”
- Lastly, the study found “no metabolic (weight gain, elevated blood sugar, increase in lipids), no endocrine (hypothyroidism, hyperprolactinemia) side effects and no increase in suicidal ideation compared to placebo.”
Indeed, the company’s RP5063 (Brilaroxazine) drug for acute schizophrenia is one investors in RVPH stock have been keeping a close eye on. These results appear to show efficacy, and investors are pricing in higher expectations of FDA approval in RVPH stock today.
The company noted that positive and negative symptoms were mitigated by its Brilaroxazine drug. Additionally, patients achieved improved social functioning and cognition. According to the company, “the FDA has agreed to consider a potential ‘Superior Safety’ label claim, if there is a positive outcome on a relevant endpoint in a pivotal Phase 3 clinical study in schizophrenia.”
The Bottom Line
These details certainly give Reviva investors a lot to be excited about today. That said, investors looking at such clinical-stage biopharma companies may want to hold a diversified portfolio. Proper portfolio discipline is always encouraged, but in cases of higher-risk speculative names, additional care should be taken with position sizing and portfolio design.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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