The shares of Neothetics Inc (NASDAQ:NEOT) declined by 24%.This was brought forward by the announcement the provider made citing that it received disappointing results from a phase II proof-of-concept study. This study was carried out in a bid to evaluate the company’s lead candidate, LIPO-202. Neothetics Inc wanted to investigate on the capability of this product towards cutting down on the submental subcutaneous fat.
It is a matter that has raised major concerns among most of the interested parties. This was absurd considering that Zacks classified Medical-Drugs performed well. That is looking at the 8% increase, yet this was over the same period of time.
On Dec 2016, the phase II study was carried out in a bid to evaluate the safety as well as the efficacy of two doses of LIPO-202.It was definitely to be put in comparison to placebo in a move to assess its impact in terms of its capabilities to reduce the submental bulging that is usually caused by the subcutaneous fat.
According to Yahoo, this study has enrolled 162 patients at 12 sites and that is of course across the United States of America. They were reportedly served with subcutaneous injections of LIPO-202 .This was also carried out with a placebo, and for every eight weeks it was done once.
The safety and efficacy measurements associated with the endpoints turned out to be a major disappointment. This was after showcasing failure towards providing the much anticipated improvements on any efficacy towards facing out the submental fat.
One of the company’s top executive in speaking to journalists stated, “We remind investors that in 2015, the company had conducted two pivotal phase III studies, evaluating LIPO-202 for the decrease of central abdominal bulging due to subcutaneous fat. These studies also failed to meet their co-primary composite or secondary endpoints and showed near identical results compared to placebo with no bias in sites or subgroups.”
Neothetics Inc has given its statement saying that it will continue with its great dedication to work and that soon it might be unveiling its future plans.
