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Concert Pharmaceuticals Plunges on Patent Petition Setback

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Shares of Concert Pharmaceuticals, Inc. plunged more than 25%, following the announcement that the Patent Trial and Appeal Board (PTAB) of the U.S. Patent and Trademark Office has refused to grant the company a Post Grant Review petition in a dispute related to Incyte Corporation’s (INCY) ‘335 patent.

However, shares of the company have gained 92.4% in the past year, significantly outperforming the industry’s gain of 10.4% in that period.

The patent ’335 protects Incyte’s JAK inhibitor, ruxolitinib, which is sold under the tradename Jakafi for treating myelofibrosis and polycythemia vera. Concert Pharma’s pipeline candidate, CTP-543, is a modified version of ruxolitinib, which is being developed as a treatment for alopecia areata.

Alopecia areata is an auto-immune disease, which result in partial or complete hair losson the scalp and/or body.

However, the company said that it may challenge the validity of the patent in the future in federal court. It will also continue developing CTP-543.

In a separate press release, Concert Pharma announced that the FDA has granted Fast Track designation to CTP-543 as a treatment for moderate-to-severe alopecia areata.

The FDA grants a fast track designation to expedite a candidate’s development and its faster review, which treat serious and unmet medical conditions. With this designation, a candidate is expected to be granted a priority review once it files a new drug application.

The candidate is currently being evaluated in a phase IIa study.

Apart from CTP-543, Concert Pharma is also developing AVP-786 for treating agitation associated with Alzheimer’s disease, JZP-386 in collaboration with Jazz Pharmaceuticals PLC (JAZZ - Free Report) in narcolepsy and CTP-730 in collaboration with Celgene Corporation in inflammatory disease.

However, in an asset purchase agreement, the company sold its cystic fibrosis candidate, CTP-656, to Vertex Pharmaceuticals Incorporated (VRTX - Free Report) in July last year.

Zacks Rank

Concert Pharma carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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