Let’s now discuss in more detail the extent to which the positive results from the clinical trial might influence the company’s success in the future. It’s worth mentioning that analyst Biren Amin from Jefferies has recently downgraded the rating on Aquinox to “Hold” from “Buy” and reduced the price target from $13 to $2 after the company’s flagship trial of AQX-1125 in chronic obstructive pulmonary disease patients with frequent exacerbations failed to demonstrate efficacy. Nevertheless, Aquinox has just announced consistently positive results from secondary endpoints from its Phase 2 LEADERSHIP trial with AQX-1125 in patients with bladder pain syndrome/interstitial cystitis (BPS/IC) and the stock skyrocketed on Monday. Hence, there are only a few steps remaining for AQX-1125 in BPS/IC towards its commercialization. The healthcare company intends to finalize its pivotal trial designs in consultation with the U.S. Food and Drug Administration and the European Medicines Agency so as to set a path for the potential approval. Eventually, as soon as the company’s lead candidate is approved, a new flourishing revenue stream unlocks for Aquinox.
Meanwhile, the company’s financial results are weak, which is not surprising for a clinical-stage company. As of the end of June, the company has cash and cash equivalents of $29 million, down from $41 million a quarter earlier, and it posted a net loss of $4.8 million for the second quarter, slightly narrower than a loss of $5.4 million a year earlier.