Liminal BioSciences ( LMNL Quick Quote LMNL - Free Report) were down 13.8% in the after-market trading session on Jul 21, after management announced its decision to discontinue the development of its lead pipeline candidate, fezagepras, which was being developed as a potential nitrogen scavenging drug.
This decision was based on data from a phase Ia single ascending dose (SAD) clinical study initiated in May 2022 that compared fezagepras to Sodium Phenylbutyrate in healthy volunteers, as a potential nitrogen scavenger. Sodium Phenylbutyrate is marketed under the trade name Buphenyl by Ucyclyd Pharma and has been approved by the FDA for treating urea cycle disorders (UCD).
Although there were no safety concerns reported in the study participants administered fezagepras, data from the SAD study showed that fezagepras was significantly inferior when compared to Sodium Phenylbutyrate as a nitrogen scavenger.
A nitrogen scavenger drug, also called ammonia scavenger drug, helps to remove ammonia from the bloodstream and has been effective in treating UCD.
In the year so far, shares of Liminal have plunged 46.8% compared with the
industry’s 20.4% decline. Image Source: Zacks Investment Research
Following the discontinuation of the development of fezagepras, Liminal BioSciences does not have any pipeline candidate in clinical development.
Management expects the decision to help the company in utilizing its resources toward its pre-clinical development programs. Presently, Liminal BioSciences is developing GPR84 antagonists and OXER1 antagonists, which are in pre-clinical development and are being developed to treat inflammatory, metabolic and fibrotic conditions. Liminal BioSciences is also looking for opportunities to expand its pipeline beyond these pre-clinical programs.
Zacks Rank & Stocks to Consider
Liminal BioSciences currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include
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