DERM stock investors are getting excited and for good reason too. Dermira (NASDAQ:DERM) released positive progress for a key drug candidate, lebrikizumab, back in mid-March and shares have been climbing since.
Since March 15th, DERM stock is up a whopping 114%, after closing at $6.84 on March 14th.
The Value Behind Lebrikizumab
Dermira experienced a huge setback in March last year when its drug candidate for acne flopped. After the results became public, investors deserted DERM stock, leaving it to tank 69% in a matter of days. Interestingly, the biopharmaceutical company had, in August 2017, assumed the rights to develop another drug candidate whose success was debatable.
Dermira paid Roche Holding (OTCQX:RHHBY) a little over $1 billion to acquire the development rights to lebrikizumab. Close to two years later, Dermira announced positive results. Moreover, the results indicated that the drug could turn out to be much more useful to eczema patients than rival products Sanofi and Regeneron Pharmaceuticals’ (NASDAQ:REGN) blockbuster drug Dupixent.
Investors Hope for the Best
The news of the positive results pushed DERM stock 118% higher. To the excitement of the stock’s shareholders, DERM could inch higher if the product successfully passes through FDA scrutiny. However, some investors may remain skeptical given the fact that the acne drug candidate that flopped last year failed during late-stage testing.
Dermira is putting a lot of weight behind another of its proprietary therapies, which seeks to alleviate the suffering of people living with chronic skin conditions. To be sure, the firm introduced glycopyrronium, which controls primary axillary hyperhidrosis. This product is only the second of its kind approved by the US FDA. The firm launched a creative campaign with an objective to promote the usage of glycopyrronium. If consumers adopt the campaign, then DERM stock is likely to reap the benefits of the consequent increase in revenues.
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