Neothetics Inc (NASDAQ:NEOT) advertises their LIPO-202 drug as the potentially “best-in-class injection for localized fat reduction and body contouring, offering an approximately five minute or less, non-surgical procedure that effectively and safely reduces abdominal bulging in non-obese patients, with no downtime”. It all sounded great to investors who were looking foward to the results of late-stage clinical trials.
Unfortunately for shareholders of Neothetics Inc (NASDAQ:NEOT), clinical trials did not go so well according to the company. The studies conducted on 1,584 patients did not show any significant improvement in endpoints to reduce abdominal bulging caused by subcutaneous fat, when compared to the placebo.
Neothetics Inc (NASDAQ:NEOT) doesn’t plan on giving up though, as they will be analyzing the data they received to determine what their next move may be.
The stock is down 79.73% or $5.68 following the news, hitting $1.45 per share. About 2.90 million shares traded hands or 2325.62% up from the average. NEOT has risen 12.64% since May 12, 2015 and is uptrending. It has outperformed the S&P500 by 16.32%.
Neothetics, Inc. is a clinical-stage specialty pharmaceutical company. The company has a market cap of $101.77 million. The Firm develops therapeutics for the aesthetic market. It currently has negative earnings. The Company’s initial focus is on localized fat reduction and body contouring.