On July 6, Gemphire Therapeutics (GEMP) stock closed at $8.09, ~70% higher than its 52-week low of $4.75 on May 7. After Gemphire announced positive clinical trial results on June 28, its stock price started to rise and closed at $5.24, and on June 29, it rose ~94.47% to $10.19.
Why Gemphire stock rose
On June 28, Gemphire announced it had achieved the primary endpoint of its Phase 2b INDIGO-1 trial of gemcabene for the reduction of triglycerides in individuals with severe hypertriglyceridemia. In the trial, gemcabene-administered patients’ triglycerides decreased by 47%, compared with 27% for patients receiving placebo therapy, and the drug demonstrated safety and tolerability. The trial’s success could help Gemphire gain approval for commercialization of the drug.
Of the five analysts tracking Gemphire stock, two recommend “strong buy” and three recommend “buy.” Their target price of $25.40 implies a ~213.97% return over the next 12 months.
In comparison, ~83% of the 24 analysts tracking Vertex Pharmaceuticals (VRTX) recommend “buy,” ~89% of the 19 tracking Sarepta Therapeutics (SRPT) recommend “buy,” and ~75% of the eight tracking Madrigal Pharmaceuticals (MDGL) recommend “buy.” Analysts’ target prices for VRTX, SRPT, and MDGL are $191.45, $190.47, and $321.17, respectively, representing ~9.28%, ~36.70%, and ~7.24% returns over the next 12 months.