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Neothetics (NEOT) Begins Phase II Study on Lead Candidate

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Neothetics, Inc. announced that it has commenced a phase II proof-of-concept study, LIPO-202-CL-31, on its lead candidate, LIPO-202, for the reduction of submental subcutaneous fat.

Neothetics’ share price has fallen 5% in the past one month, underperforming the Zacks classified Medical-Drugs industry which has witnessed a decline of 4% in the same time frame.



The  multi-center, double-blind, placebo-controlled phase II study is being conducted to evaluate  the safety and efficacy of two doses of LIPO-202 in comparison to placebo for the reduction of submental bulging due to subcutaneous fat. The study is expected to enroll 150 patients, who will receive up to 30 subcutaneous injections of LIPO-202 (either 0.3 mcg or 3.0 mcg dose) or placebo once a week for eight weeks. Follow up visits to access safety and efficacy will occur one week and four weeks following the last treatment.

The study endpoints will include both safety and efficacy measurements. Efficacy measures will study improvement in the patient’s submental region as evaluated by both the patient and clinician, overall patient satisfaction and assessment of submental fat thickness by calipers.
Neothetics expects to report top-line data from the study in late second-quarter 2017.

Per the company, there is currently an established regulatory pathway for injectable drugs for the reduction of submental fat. Moreover, the submental fat reduction market is anticipated to grow bigger than the $2.5 billion U.S. toxin and filler market.

With no approved product in Neothetics’ portfolio yet, successful development and subsequent approval of LIPO-202 will be a huge boost for the company.

Key Picks

Investors looking for some well-positioned stocks in the health care sector could consider Cambrex Corporation , Heska Corporation (HSKA - Free Report) and Anika Therapeutics Inc. (ANIK - Free Report) .  While Cambrex and Heska sport a Zacks Rank #1 (Strong Buy), Anika carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Heska’s earnings estimates improved 19.5% for 2016 and 10.9% for 2017 in the last 60 days. The company posted a positive earnings surprise in each of the four trailing quarters, with an average beat of 301.64%. Its share price has increased 86.6% year to date.

Cambrex’s earnings estimates increased 3.7% for 2016 and 5.2% for 2017 in the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters, with an average beat of 19.78%. Its share price is up 15% year to date.

Anika’s earnings estimates for 2016 and 2017 were up 3.9% and 0.5%, respectively in the last 60 days. The company has recorded a positive earnings surprise in each of the last four quarters, the average being 33.14%. Its share price is up 29.8% year to date.


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