LPCN Stock Crashes 78%— Here’s Why

• While the trial failed its primary endpoint of significant reduction in depression severity, the drug was well tolerated and demonstrated a favorable safety profile, the company said. 
• Lipocine, however, said that it has identified signals in a post hoc analysis that could indicate a potential development path for LPCN 1154.
• The company said it will preserve capital and engage with shareholders to evaluate all options available to the company going forward.

Shares of Lipocine Inc. (LPCN) fell 78% on Thursday after the company said that its experimental drug LPCN 1154 did not bring about a significant reduction in the severity of postpartum depression in a trial.

While the trial failed its primary endpoint of significant reduction in depression severity, the drug was well tolerated and demonstrated a favorable safety profile enough to support outpatient administration without the need for healthcare provider monitoring, the company said. No treatment-related severe or serious adverse events were reported and no cases of excessive sedation or loss of consciousness were observed, it added.

What’s Next For Lipocine?

Lipocine, however, said that it has identified signals in a post hoc analysis that could indicate a potential development path for LPCN 1154. The company has applied for breakthrough therapy and fast track designations for LPCN 1154 in patients with postpartum depression based on the post hoc analysis results, the company said.

While it waits for the FDA to get back, the company said it will preserve capital and engage with shareholders to evaluate all options available to the company going forward, including continued development of LPCN 1154, development of other product candidates, strategic transactions, partnerships, and other opportunities, it said.

How Did Retail Traders React?

On Stocktwits, retail sentiment around LPCN rose from ‘neutral’ to ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘low’ to ‘extremely high’ levels.

A Stocktwits user drew focus to the company’s remaining pipeline, which includes experimental drugs for the treatment of non-alcoholic steatohepatitis, for the management of symptoms associated with cirrhosis and another for the prevention of recurrent preterm birth.

Another user expressed hopes for a minor recovery after the crash.  

LPCN stock has dropped 37% over the past 12 months. 

Read More: SGML Stock Soars On $100M Bank Guarantee, Retail Says 'One Last Hurdle' Is Behind

For updates and corrections, email newsroom[at]stocktwits[dot]com.