Development-stage biotech Rigel Pharmaceuticals ( NASDAQ: RIGL ) traded higher on Wednesday even after the company said that a Phase 3 trial for its investigational COVID-19 therapy, fostamatinib, did not meet the main goal with statistical significance.
The 280-patient FOCUS trial, conducted in partnership with the U.S. Department of Defense, was designed to evaluate fostamatinib plus standard of care (SOC) against placebo plus SOC in high-risk hospitalized COVID-19 patients who hadn't developed respiratory failure.
Per the topline data, the primary endpoint of mean days on oxygen through Day 29 was 6.9 days in the fostamatinib arm compared to 9.0 days in the placebo arm (p=0.0603).
However, Cantor Fitzgerald analyst Kristen Kluska noted that the program was not the "main focus" of investors.
"While the endpoint was missed, we don't view this as a significant loss for the company, as we think the COVID-19 treatment paradigm has shifted substantially since this trial was initiated," Kluska wrote, reiterating the Neutral rating and $2 per share target on Rigel ( RIGL ).
H.C. Wainwright offered similar remarks noting that despite the setback, its narrative on the biotech "based on key contributors" remains unchanged. The analyst Joseph Pantginis reaffirms the Buy rating and $15 per share target on the stock.
Another randomized, placebo-controlled trial for fostamatinib with funding from the National Institutes of Health (NIH) is currently underway for patients with more severe COVID-19-related complications.
Despite a negative readout from FOCUS, "RIGL still has additional shots on goal in COVID," Seeking Alpha contributor Biotech Beast wrote on Monday with a Buy rating on the stock.
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Rigel Pharma gains as analysts play down setback for COVID-19 therapy