- Thinly traded nano cap Neothetics (NASDAQ:NEOT) craters 68% premarket on robust volume in response to its announcement that a Phase 2 clinical trial assessing lead product candidate LIPO-202-CL-31 for reducing submental subcutaneous fat (double chin) failed to show a treatment effect greater than placebo.
- The company says it is disappointed with the outcome and is "determining a path forward for the company." At the end of Q1, its cash balance was only $9.7M.
- LIPO-202 is an injectable formulation of salmeterol xinafoate, a well-known long-acting beta2-adrenergic receptor agonist used in several commercially available inhaled drugs, including GlaxoSmithKline's SEREVENT DISKUS. Earlier studies suggested that salmeterol xinafoate activates beta2-adrenergic receptors in fat cells, triggering the metabolism of triglycerides and shrinking them via a process called lipolysis.
- Previously: Neothetics initiates mid-stage study of lead product candidate for reduce double chin; shares ahead 21% premarket (Dec. 23, 2016)
- Now read: Trading in Neothetics halted pending news
Original article