Repros Jumps on Positive Drug Trials

Shares in Texas pharma Repros Therapeutics, Inc. (RPRX) gapped up over 30 percent in early morning trading before settling into gains of just over 10 percent on heavy volume as the day wore on. The spike, driven by positive topline results from the most recent study on its drug Androxal® reported after close on Monday, pushed Repros stock to a new 52-week high.

Positive results for Androxal

Androxal is being developed for men of reproductive age with low testosterone due to secondary hypogonadism, which is also associated with obesity and could be among the most common causes of low testosterone. Repros reported that Andorxal met both co-primary endpoints in its second pivotal study, with 81 percent of subjects using the drug experiencing normalized testosterone and no 24-hour average testosterone levels outside of normal ranges. Androxal, which is in a class similar to Sanofi’s (SNY) Clomid®, could receive a strong share of the testosterone replacement therapy (TRT) market because it could also help preserve male fertility while being administered orally, making it significantly more convenient than testosterone replacement injections.  

Possible Sale

Brean Capital initiated coverage of Repros in July of this year, calling it a buy and setting a price target of $32. At the time, analyst Jonathan Aschoff said “Its lead compound Androxal is being evaluated in a Phase 3 program for secondary hypogonadism with results in 4Q13 and 2Q14, which in our view would be key investment catalysts, and we project Androxal launch in mid-2015.” Now, Brean is citing these positive results as a reason for optimism, as well as reports that management may have interest in selling the company. Brean estimated the sell-price potentially reaching $40 a share, in the event that the sale goes down.

In addition to Andorxal, Repros currently has female reproductive drug Proellex® in the pipeline, intended for use in uterine fibroids and endometriosis. “The vaginal formulation of Proellex (Proellex-V) will enter Phase 2b in 2H13 for uterine fibroids with an NDA submission expected in 2016. All compounds are protected by U.S. patents," said Aschoff in July.