Biotech Stocks of Small Scale Highly Primed for a Burst Through
In the world of pharmaceutical research, the stakes are high, and the journey from clinical trials to commercial sales can be unpredictable. This is particularly true for pre-commercial businesses, which may struggle to predict when they'll start recording sales.
One such company is aTyr Pharma, whose upcoming phase 3 readout for pulmonary sarcoidosis patients could potentially face funding challenges if the results aren't successful. On a more positive note, the company concluded June with $83 million in cash, providing a financial cushion. However, with a burn rate of $66.6 million over the past 12 months, the financial situation becomes more immediate.
Meanwhile, MoonLake Immunotherapeutics, with a modest $3.5 billion market cap, is pushing forward with its lead candidate, sonelokimab. This drug is currently in two phase 3 trials for psoriatic arthritis, with primary endpoint results expected in the first half of 2026. The company's phase 3 trials for hidradenitis suppurativa, a debilitating skin condition, are expected to enroll about 800 patients.
The phase 2 trial for hidradenitis suppurativa using sonelokimab showed promising results, with 57% of patients achieving a 75% symptom reduction after 24 weeks of treatment. MoonLake had $425.1 million in cash and securities as of June, reducing the risk of needing to raise capital in the near future.
The race for effective treatments for hidradenitis suppurativa is heating up. Affibody is conducting a Phase 3 clinical trial of Izokibep for the treatment of this condition, with positive 16-week data to be presented at the EADV 2025 Congress. Incyte is also presenting late-breaking Phase 3 data for povorcitinib in hidradenitis suppurativa at the same event in Paris 2025. The topline Phase 3 results of Izokibep will be publicly released at the EADV 2025 late-breaking session.
These advancements offer hope for the millions of people affected by hidradenitis suppurativa, a condition that currently lacks effective treatment options. The outcomes of these trials could significantly impact the lives of those suffering from this condition and potentially pave the way for new treatment paradigms.
