Summary
Shares have fallen by around 30% year to date but appear to have found a bottom in the low $5 range.
Lead candidate THX-TS01 is currently being examined in an ongoing phase 2a clinical study in Tourette’s Syndrome at Yale University.
Anecdotal reports from TS patients whose tic severity was reduced significantly by smoking marijuana along with other related evidence bode well for the trial´s outcome.
Tourette´s is an underserved market with substantial upside potential.
The stock is a buy and readers who have done their due diligence could purchase shares in the near term.
Shares of Therapix Biosciences (TRPX) have decreased by around 30% year to date. The stock popped back on my watch list after experiencing a nice bounce from the mid-$5 area.
The company specializes in the development of cannabinoid-based drugs, an area I’m quite fond of not only for tailwinds in the sub-sector but also due to previous big winners in the space. Zynerba Pharmaceuticals (ZYNE) was a solid run-up and revaluation play that gave traders a triple with plenty of time to take partial or full profits prior to data. Lately, I’ve also given my most recent thoughts on GW Pharmaceuticals (GWPH), told investors to pull the trigger on Intec Pharma’s (NTEC) secondary offering and made my case several times for Zogenix (ZGNX) as a ROTY candidate.
Upside in Tourette’s
Lead candidate THX-TS01 is currently being examined in an ongoing phase 2a clinical study in Tourette’s Syndrome at Yale University (n=18). Management has guided for the last patient to be enrolled by the end of September or early October. As of their second quarter report 10 patients had completed the entire three month treatment regimen. I found it encouraging that of those 10 patients, 8 chose to extend their treatment for another three months based on a positive assessment of efficaciousness. I see it basically as telegraphing what we already know, that when results are reported they will likely be positive (with all the usual caveats). What we don´t know is whether response rates or reductions in tics will be competitive with existing treatments.
credit:seekingalpha.com
