SAN DIEGO - Dermata Therapeutics (NASDAQ: DRMA) experienced a 6.9% increase in stock value Thursday, following the announcement of an FDA agreement on the phase III study protocols for their acne treatment, DMT310. The company, which has been grappling with a significant year-to-date share price drop, shared that patient enrollment for its STAR-1 study is set to commence in December.
The STAR-1 study represents a critical late-stage pivotal program designed to evaluate the efficacy of DMT310, a treatment derived from freshwater sponges, on individuals with moderate-to-severe acne. The program will encompass two separate trials, aiming to recruit approximately 550 participants each across the U.S. and Latin America. The subjects, who must be nine years old or older, will be randomly assigned to receive either DMT310 or a placebo once weekly over twelve weeks.
The effectiveness of DMT310 will be monitored by noting changes in lesion counts and monthly Investigator Global Assessment (IGA) response rates. Previous phase IIb study results were promising, with nearly half of the patients treated with DMT310 achieving clear or almost clear skin based on IGA scores after twelve weeks—significantly higher than the less than one-fifth success rate for those on placebo.
Despite these positive clinical developments, Dermata Therapeutics has faced challenges this year, as its shares have plummeted by 89.4%, sharply contrasting with the industry's average decline. This performance stands in stark contrast to other pharmaceutical companies like Ligand Pharmaceuticals (NASDAQ: LGND), ACADIA Pharmaceuticals (NASDAQ: NASDAQ:ACAD), and Anixa Biosciences (NASDAQ: NASDAQ:ANIX), which have shown varied investment outlooks and stock movements based on Zacks Ranks during the same period.
InvestingPro Insights
In comparison to Dermata Therapeutics, Ligand Pharmaceuticals (NASDAQ: LGND) and ACADIA Pharmaceuticals (NASDAQ: ACAD) have demonstrated different investment prospects. For Ligand Pharmaceuticals, InvestingPro Tips indicates that the company holds more cash than debt on its balance sheet and has a high shareholder yield. The net income is expected to grow this year, and three analysts have revised their earnings upwards for the upcoming period. The company is trading at a low P/E ratio relative to near-term earnings growth, suggesting potential undervaluation.
On the other hand, ACADIA Pharmaceuticals has seen accelerating revenue growth, and ten analysts have revised their earnings upwards for the upcoming period. However, analysts do not anticipate the company will be profitable this year.
InvestingPro data also provides some insightful metrics. For instance, Ligand Pharmaceuticals has a market cap of 1000M USD and a P/E ratio of 59.74. The revenue for the last twelve months as of Q3 2023 is 153.59M USD, with a revenue growth of -15.95%. ACADIA Pharmaceuticals, however, has a much larger market cap of 3690M USD, with a negative P/E ratio of -24.53. The revenue for the same period is significantly higher at 631.89M USD, with a strong revenue growth of 23.54%.
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