Viridian Therapeutics unveiled promising results Monday for its Horizon Therapeutics-rivaling thyroid eye disease treatment — and the biotech stocks diverged.
In morning trades on today's stock market, Viridian stock catapulted 49.4% higher to close at 22. Horizon stock, on the other hand, slipped 3.8% to finish at 64.90. Horizon makes the only approved treatment for the eye condition, dubbed Tepezza.
Both Viridian's VRDN-001 and Horizon's Tepezza block the insulinlike growth factor-1 receptor. The receptor, also called IGF-1, plays a key role in the pathology of thyroid eye disease. SVB Securities analyst Thomas Smith said Viridian's results compare well with Horizon's after six weeks of treatment.
"We view these results as providing clear support for VRDN-001 advancement into pivotal studies," he said in a report to clients. He expected the biotech stock to rocket 40%-80% higher on the news.
Rival Biotech Stocks Diverge
Viridian tested its thyroid eye disease treatment in six patients. Another two received a placebo. After six weeks, five patients showed improvement in proptosis. Proptosis is bulging in the eye, common in thyroid eye disease patients.
Five patients responded to the treatment and five showed improvement in clinical activity score. The latter is a grading system across thyroid eye disease symptoms. Double vision also improved for most patients, Viridian said in its news release.
SVB's Smith kept his outperform rating on biotech stocks Viridian.
The company also noted there were no serious side effects following treatment. Two patients reported mild muscle spasms and there was one case of "ringing in the ears" that resolved within two weeks. Now, Viridian is planning a final-phase study later this year. It's also testing a higher dose in a second study.
"We believe VRDN-001 could show a more rapid onset of action and afford a shorter course of treatment with the potential for a differentiated profile vs. other TED therapies, due to its full antagonism of IGR-1 receptor," Viridian Chief Medical Officer Barrett Katz said in a written statement.
The news sent biotech stock Viridian above its 200-day moving average, according to MarketSmith.com. Viridian went public in late 2021 after its acquisition by Miragen Therapeutics. The company rebranded later under the Viridian name.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
