[THE INVESTOR] Genexine’s shares climbed nearly 5 percent on Sept. 22 following news that its rival US-based Versartis failed large clinical trials for a growth hormone deficiency treatment candidate.
Versartis said patients receiving its long-acting recombinant human growth hormone somavaratan failed to show non-inferiority, compared with patients on Pfizer’s drug Genotropin in a phase 3 trials.
Shares of the Korean biopharma firm, which is also developing its long-acting human growth hormone GX-H9, rose 5 percent to hit 50,000 won (US$44) before retreating to close at 48,300 won.
“Genexine could emerge as a game-changer in the growth hormone market based on its superior clinical data and setbacks of other rivals like Versartis and OPKO,” said Ku Wan-sung, an analyst at NH Investment & Securities.
Last week, Genexine announced positive phase 2 trials of GX-H9, demonstrating annualized height velocities comparable to that of the active comparator.
The treatment is held as a possible best-in-class drug that would provide a once-weekly or twice-monthly alternative to current daily injection therapy.
While many companies are eyeing the growth hormone deficiency treatment market valued at 4 trillion won, Versartis has been leading the pack followed by Ascendis in terms of development.
“The value of the GX-H9 will be highlighted as Versartis and Genexin are the only companies in the process of developing twice-monthly formulations,” Daishin Securities analyst Hong Ka-hye said.
By Park Han-na (email@example.com)