GTx Shares Nearly Doubles Following Announcement of Phase II Proof-of-Concept Trial Data

GTx, Inc. (NASDAQ:GTXI) shares ended the day up over 90% due to the company’s announcement of its release of preliminary clinical data from its open-label, ongoing Phase II clinical trial of GTx-024, or enobosarm, in postmenopausal women with stress urinary incontinence. Now, let’s take an in depth look into the catalyst and some statistics on GTx.

GTx Announces Positive Prelim Results From Phase II Clinical Trial

GTx Incorporated released its preliminary clinical data for the Phase II clinical trial of GTx-024, in an abstract entitled “Kegels In A Bottle”: Preliminary Results Of A Selective Androgen Receptor Modulator (GTx-024) For The Treatment Of SUI In Postmenopausal Women. This abstract summarized the data from the first few patients who completed 12 weeks of treatment with enobosarm, and could be examined here: International Continence Society (ICS).

Now, the company’s data indicated that enobosarm showed a clinically significant reduction in incontinence episodes per day, with the average level of stress leaks decreasing by 80.9% from the baseline over 12 weeks. Stress leaks fell from a mean, or average, of 5.7 leaks per day at the baseline to just 1.1 leaks per day by the twelfth week. Moreover, the reductions in incontinence episodes were sustained beyond the conclusion of the study of the drug at week 12.

According to GTx Executive Chairman Robert J. Wills, Ph.D., “What caught our attention was the fact that the first seven patients dosed in this study saw impressive positive results. We subsequently added two additional clinical trial sites, and we look forward to presenting data from additional patients from this study at the ICS meeting in September…We believe SUI represents a near-term commercial opportunity in a potentially large population of women whose treatment options are currently limited to non-pharmacologic or invasive treatments.”

What You Need to Know About GTx

  • GTx reported positive preliminary results from its ongoing Phase II proof-of-concept clinical trial in women with stress urinary incontinence and shares nearly doubled.
  • Prior to today’s performance, GTXI was down nearly 40% over the past month and over 50% over the past one year, as of June 9, 2017.
  • GTx Inc had a 52-week range between $2.73 and $11.19.
  • As of May 31, 2017, GTXI had shares outstanding of 16.04M, shares floating of 2.65M and a short float of 3%.

Check out GTXI on the daily chart below.

GTx

Source: TradingView

Bull Case

GTXI ended the day up over 95%, and consequently, traders might see this as a momentum play due to its positive results from its ongoing Phase II clinical trial. Now, the stock has been beaten up, and therefore, some traders may be looking for it to continue to rebound. Moreover, GTXI has a low float, and it could continue to rise, due to the supply and demand aspects of low float stocks.

Bear Case

On the other hand, some traders may view this as a bearish play. Since the stock nearly doubled, some market participants may view this has a mean reversion trade. Moreover, the stock spiked above its upper Bollinger Band, and therefore, it could revert to the mean.

The Bottom Line

GTXI shares nearly doubled today, after the company announced its positive preliminary results from its open-label, ongoing Phase II clinical trial of GTx-024. Despite nearly doubling on the day, there are some still reasons why traders might be bullish and bearish on the stock.

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