Analysts Downgrade Ventrus Biosciences Inc (NASDAQ:VTUS)
The $34 million micro-mini capped bio tech firm Ventrus Biosciences Inc (NASDAQ:VTUS) reported updates from its ongoing trial of target drug VEN 307 on 13th were designed to determine the efficacy and the safety aspects of its target drug “Diltiazem Hydrochloride” which is applied in the form of a cream to bring down pain in patients suffering from skin break in the elementary tract.
Test Modality And Resutls
The tests involved applying the target treatment cream to 434 patients and compared against the healing effects of Placebo Cream. The trials were conducted across the globe at 90 different centres and the results indicated a substantial and appreciable increase in the relief provided to patients administered “VEN 307” , but was found to be equivalent in its efficacy to relieve pain to patients as compared to Placebo cream. While the results are positive, since they indicate effectiveness of the target drug, the results has been a dampener for the investor community. This is because; the candidate drug has not demonstrated any improvement in the efficacy as compared to existing drug. Hence even if the drug is successfully managed through the FDA approval process, it will end up being a competitor to an existing entrenched drug.
Analyst Down Grade
Commenting about the impact of the update to future development efforts Ventrus Biosciences Inc (NASDAQ:VTUS) Chairman and Chief Executive Officer Dr. Russell Ellison has been quoted to have said that, “While this second study confirms a consistent effect in decreasing AF-related pain with diltiazem 2%, results among placebo patients are inconsistent across these two pivotal studies. Compounded diltiazem remains an important non-nitroglycerin treatment standard in this condition, yet this is an area which we believe may be more safely and reliably served by an FDA approved prescription pharmaceutical treatment. We look forward to discussing these results with the FDA.” Rating agency Cantor Fitzgerald downgraded Ventrus Biosciences (NASDAQ:VTUS) to a hold from previous buy on 14th.