Apellis Pharmaceuticals and Belite Bio were among the worst-performing biotech stocks Monday after presenting test results in two eye diseases.
The former presented the results of a two-year study in patients with geographic atrophy, a disease that causes progressive degeneration of the macula. Apellis' drug, pegcetacoplan, led to slower growth of eye lesions. But that came with an increase in side effects from the 18-month update, Evercore ISI analyst Umer Raffat said in a report.
Meanwhile, Belite Bio released a 12-month update from its test in teens with Stargardt Disease. In this condition, fatty material builds up on the macula, leading to vision loss. Belite said patients improved across a variety of parameters. The study supports the drug's safety, Belite said in a news release.
But on today's stock market, the biotech stocks collapsed. Apellis shares lost 10.6%, ending the regular session at 61.04. Belite stock tumbled 13.3% to 29.10. The negative moves put the duo among the worst-performing biotech stocks out of more than 800 that Investor's Business Daily tracks.
Side Effects Sideline Biotech Stock
Apellis tested every month and every-other-month doses of pegcetacoplan in patients with geographic atrophy. Both doses outperformed a "sham" treatment in terms of preserving patients' vision.
"These results provide the first direct evidence that slowing geographic atrophy lesion growth has the potential to preserve visual function," Charles Wykoff said in a written statement. Wykoff is the director of research for the Retina Consults of Texas. He presented Apellis' results at the American Academy of Ophthalmology annual meeting.
But in a research report, Evercore's Raffat noted four patients treated every other month experienced serious side effects. In comparison, none had side effects in the 18-month update. Raffat reiterated his outperform rating on the biotech stock.
Apellis stock has a best-possible Relative Strength Rating of 99. This means the biotech stock ranks in the top 1% of all stocks in terms of 12-month performance, according to IBD Digital. Despite the dive Monday, shares remain above a buy point of 50.81 out of a cup-with-handle base, MarketSmith.com shows.
Interim Results Slam Belite Stock
Belite researchers studied a drug called tinlarebant in 13 adolescents with Stargardt Disease.
After one year, the majority of patients showed vision stabilization in at least one eye. Other measures included halted or slowing lesion growth and preservation of retinal thickness.
"The Phase 2 data presented at (the American Academy of Ophthalmology annual meeting) continue to support tinlarebant's safety and (effectiveness) profile over the one-year treatment period and reinforce that this investigational therapy is a promising oral treatment for (Stargardt Disease) patients," Belite Chief Executive Tom Lin said in a written statement.
But the biotech stock toppled to its lowest point since late August. Shares also have a best-possible RS Rating of 99. The move Monday sent them crashing below their 50-day moving average.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
