In the last trading session, the stock price of INSYS Therapeutics Inc (NASDAQ:INSY) declined more than 26% to close the day at $9.86. However, the stock is still in green for the week, as it had started the week with the gains of over 30%. There isn’t any evident announcement to justify lower price for the company. The traded share volume on Thursday was 6.90 million compared to average share volume of 1.09 million.
Insys Therapeutics shares jumped over 15% on December 26 after the firm reported that its investigational cannabidiol oral solution has received a fast track designation by the U.S. FDA for cure of Prader-Willi syndrome. The firm plans to move this candidate into clinical development stage late in Q1 2018.
Remarkably, Prader-Willi syndrome is a genetic illness in children that may sooner or later lead to obesity and Type 2 diabetes. The FDA allows a fast track status to expedite a candidate’s development as well as its faster review, which cure serious and unmet medical problems.
With this designation, a candidate is anticipated to be allowed a priority review once it submits a new drug application. As per the firm’s press release, Prader-Willi syndrome comes in the list of the most prevalent causes for life-threatening obesity in kids in the nation. One of 15,000 children in the U.S. is suffering from this disease with no permitted products available currently. Therefore, there is a notable unmet need in this segment, demanding an effective treatment to combat the disease.
In addition, the company also reported start of a Phase II trial on Cannabidiol oral solution for curing refractory childhood absence epilepsy under pediatrics. The trial was intended to evaluate the safety, tolerability, pharmacokinetics and efficacy of the candidate for the respective indication. Insys Therapeutics’ stock has failed to perform at par with industry in 2017.