Why Scynexis Is Making a Run

By Chris Lange Updated Jan 13, 2:44AM EST · Published Oct 6, 9:15AM EDT

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Why Scynexis Is Making a Run — © Thinkstock

Scynexis Inc. (NASDAQ: SCYX) shares made a handy gain early on Thursday after the company announced the results from a couple of its mid-stage trials. Specifically, the company evaluated two Phase 2 studies of SCY-078 and the results were very favorable. At the same time, Scynexis closed its $15 million term loan with Solar Capital Ltd. (NASDAQ: SLRC).

In the first study, treatment with oral SCY-078 in patients with vulvovaginal candidiasis (VVC), resulted in significantly better clinical cure rates and fewer recurrences of VVC at the four-month follow-up when compared to the standard of care (oral fluconazole).

As previously reported, clinical cure rate was higher for patients receiving oral SCY-078 compared to oral fluconazole at the test of cure visit (Day 24). Additionally, follow-up data now available showed a high clinical cure rate at the four-month visit (end of observation period) of 88% in patients who received SCY-078 compared to 65% in patients who received fluconazole.

In the second study, which evaluated oral SCY-078 as a step down therapy in patients with invasive candidiasis, oral SCY-078 achieved the target exposure for efficacy and was well-tolerated.

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This study met its primary objective by confirming the once daily oral dose of SCY-078 750 mg as a dose that is both overall safe and tolerated and achieves the target exposure in these patients. During the study period, there were no reports of mycological failures in the SCY-078 versus two infection-related failures (one fungemia and one abdominal sepsis) in the fluconazole group.

Excluding Thursday’s move, Scynexis has underperformed the broad markets, with the stock down nearly 23% year to date. Over the past 52 weeks, the stock is down closer to 30%.

Shares of Scynexis closed Wednesday up nearly 7% at $4.80, with a consensus analyst price target of $12.86 and a 52-week trading range of $1.74 to $7.69. Following the announcement shares were trading up about 18% at $5.67.

Solar Capital closed Wednesday at $20.50. Its consensus price target is $21.57, and the 52-week range is $15.05 to $20.88.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.