Shares of the biotechnology company Flex Pharma, Inc. (Nasdaq:FLKS) have taken a dive today.
After closing at $6.73 USD yesterday, Flex Pharma has gone down nearly 21% since the market opened this morning.
The company recently announced a positive data report of its Phase 2 Trial of FLX-787 in Multiple Sclerosis (MS), which was chosen in 2015 to be a new clinical drug candidate.
FLX-787 is meant to treat cramps, spasms and spasticity associated with severe neurological conditions including Amyotrophic Lateral Sclerosis (ALS), MS and peripheral neuropathies such as Charcot-Marie-Tooth (CMT) and comes in the form of an orally disintegrating tablet.
According to the company’s press release, the drug “reduced cramp/spasm frequency (p=0.0017) and increased cramp-free days (p=0.0457) in MS patients in a pre-specified analysis of the parallel treatment phase” and “was generally well tolerated.”
Anneke van der Walt, an Associate Professor of Neurology at the Royal Melbourne Hospital, University of Melbourne, and the lead investigator of the study, says “MS patients frequently complain of cramps, spasms, and spasticity which can dramatically affect their quality of life,” so the new data from the trial suggests “that FLX-787 may have the potential to address this important unmet medical need.”
CEO and President of Flex Pharma, William McVicar, also reiterates that there is clear potential for FLX-787 to help improve cramps and spasticity in MS patients.
Eventually, the company will be moving on to a Phase 2b study of the full FLX-787 clinical development program.
Currently, there does not seem to be a reason as to why Flex Pharma shares have gone down after the positive results of the FLX-787 Phase 2 trial.
The company’s high of the week occurred on March 21, where it closed at $7.07 USD.
Featured Image: twitter
