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Biotech Aptinyx Shows Promise with Clinical Trials
Stock Analysis & Ideas

Biotech Aptinyx Shows Promise with Clinical Trials

The proof is in the pipeline. That’s a saying that applies well to biotechnology companies, and Aptinyx (APTX) has a clinical product pipeline that’s small but highly focused.

Aptinyx specializes in treatments for the central nervous system (CNS) and the brain. To this end, Aptinyx has developed a platform to discover novel compounds that work through a unique mechanism to modulate NMDA receptors and enhance synaptic plasticity.

The company’s product pipeline offers those who suffer from painful diabetic peripheral neuropathy, fibromyalgia, post-traumatic stress disorder, and cognitive impairment the hope of science-backed treatment options. (See APTX stock analysis on TipRanks)

Investors could find an ideal entry point, as APTX stock is quite cheap despite Aptinyx’s excellent progress across multiple clinical-stage programs.

A Quick Look at APTX Stock

Some investors get the feeling that the market purposely “shakes out the weak hands.” In other words, amateur traders tend to panic-sell stocks after they go down – and that’s precisely when the smart money starts buying.

This seems to happen with APTX stock, time and again. The market loves to push this stock down, thereby “shaking the tree” and clearing out the amateur panic-sellers.

After that, the market pulls APTX stock right back up to $4. This has happened over and over, since the summer of 2019.

In the latest instance of this phenomenon, APTX stock pulled back to $2.50 in May, only to zoom back up to $3.50 in June. With that, a re-visitation of $4 seems almost inevitable.

On the Fast Track

Aptinyx only has three products in its clinical pipeline, but they all hold tremendous promise. Moreover, two out of the three products have been given Fast Track Designation by the U.S. Food and Drug Administration.

The first one to receive that designation is NYX-2925, an oral small-molecule NMDA receptor modulator in development for the treatment of chronic pain. It has been granted Fast Track Designation to treat neuropathic pain associated with diabetic peripheral neuropathy.

NYX-2925 is in Phase 2 clinical trials for that indication, as well as for the treatment of fibromyalgia (though there’s no Fast Track Designation for this at the moment).

The other treatment to receive this designation is NYX-783, an oral small-molecule NMDA receptor modulator in development for the treatment of post-traumatic stress disorder, or PTSD. Currently in Phase 2 trials, NYX-783 has already demonstrated meaningful improvements in CAPS 5 domain cluster scores compared to a placebo.

Unmet Medical Needs

Not currently given Fast Track Designation, but highly promising nonetheless, is NYX-458. This an oral small-molecule NMDA receptor modulator in development for the treatment of cognitive impairment associated with Parkinson’s disease and dementia with Lewy bodies. Like Aptinyx’s other two aforementioned products in the pipeline, this one’s in Phase 2 trials.

There’s a compelling scientific rationale to advance NYX-458, as Lewy body dementia comprises 15% to 20% of cases of dementia.

Really, a strong argument could be made that Aptinyx’s product candidates address multiple severely under-addressed medical needs – and that they represent a vast commercial opportunity. According to Aptinyx, in the U.S., up to 15 million people are affected by fibromyalgia, and around 7.5 million are impacted by painful diabetic peripheral neuropathy. Moreover, more than 8.5 million are affected by post-traumatic stress disorder, and around 1.4 million by cognitive impairment associated with Parkinson’s disease and dementia with Lewy bodies.

By modulating the NMDA receptor in a specific way, Aptinyx is potentially improving the quality of life for many millions of patients.

If the FDA grants full approval to commercialize one or more of Aptinyx’s products, the sky’s the limit for APTX stock.

Wall Street Weighs In

According to TipRanks’ analyst rating consensus, APTX is a Strong Buy, based on 7 unanimous Buy ratings. The average analyst Aptinyx price target is $10.67, implying 204.86% upside potential.

The Takeaway

Aptinyx is making excellent progress in advancing the science of CNS disorder treatment. APTX stock, meanwhile, is launching towards that familiar $4 level again with strong momentum and imminent breakout potential. The stock holds promise for non-panicky investors.

Disclosure: At the time of publication, David Moadel did not have a position in any of the securities mentioned in this article.

Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.

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