Shares of Verrica Pharmaceuticals, Inc. (VRCA) rose sharply this week ahead of the company’s July 23, 2023, PDUFA date for VP-102, a topical combination drug-device product. VP-102 would be the first approved treatment for molluscum contagiosum (MC), a benign skin disease that primarily affects children.
Verrica’s stock traded this week between $6.48 per share and $7.34 per share, representing 5% and 18.9% increases, respectively, from the $6.17 per share price at the time of the April 28 SanaCurrents report. The stock increases are consistent with SanaCurrents’ expected, risk-adjusted 7% to 14% rise in a stock price following the announcement of a PDUFA date. Accordingly, SanaCurrents is discontinuing coverage of Verrica and exiting a majority of its position prior to the PDUFA date.
Viridian Therapeutics, Inc. (NASDAQ:VRDN) this week reported mostly positive data from the company’s phase I/II trial of VRDN-001 to treat mild, long-term thyroid eye disease (TED). SanaCurrents issued a speculative report on the VRDN-001 phase I/II trial on April 21, when Viridian’s stock closed at $29.67 per share.
Viridian’s 12-patient trial, testing two different doses of VRDN-001, saw declines in proptosis – the eye bulging that is the distinguishing characteristic of TED – to slightly higher degrees than the approved drug Tepezza displayed in a similar study at the same time point. However, Viridian did not offer a placebo comparison, making it difficult to assess how competitive VRDN-101 was with Tepezza. Unimpressed investors sent Viridian’s stock down to the $20-21 per share range this week.
SanaCurrents is discontinuing coverage and exiting its position in Viridian.
Disclosures
- SanaCurrents is discontinuing coverage of VRDN and exiting its position in the company’s stock.
- SanaCurrents is maintaining its coverage and exiting part of its position in VRCA.
- Proceeds from the closing of these positions likely will be distributed into investments in other pending catalysts, unless explicitly stated otherwise.
- Should any pending catalysts for other companies in SanaCurrents‘ coverage be realized, proceeds from the closing of those positions will likely be distributed into investments in all other pending catalysts, unless explicitly stated otherwise.
- Should SanaCurrents decide to make any interim buy or sell decisions, or any suspensions for any pending catalysts, you may be notified of any such moves via email.