Dermira (NASDAQ:DERM) topped ~$15 last week after weeks of selling pressure. And although revenue and profits are potentially years away still, two catalysts suggest investors should watch this stock.
Dermira has two catalysts: positive clinical results and a capital raise to replenish its cash balance. On Mar. 18, the company reported all three doses for treating atopic dermatitis beat placebo. The positive Phase 2B results for lebrikizumab will allow the company to move to the Phase 3 study next.
The drug works through a monoclonal antibody binding on IL-13. Subjects inject the drug, much like with Regeneron’s (NASDAQ:REGN) Dupixent. DERM stock rose so nicely that REGN stock backed off from the $440 peak at the start of March.
XBiotech (NASDAQ:XBIT), like Dermira, also reported positive clinical results in February. The stock’s uptrend is holding. Buying continued when the company presented at the AAD (Dermatology) annual meeting in March.
Atopic Dermatitis is clearly a big market, so XBIT’s positive bermekimab data is a positive driver for its share price. XBIT’s drug has an even higher success rate, with 71% of treated patients achieving EASI 75.
Takeaway
REGN investors may have added XBIT and DERM stock to play their short-term rally. Given their positive, clinical results, investors should consider trading or holding them.
