This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cempra Antibiotic Candidate Clears Important Heart Safety Hurdle

CEMP Chart
CEMP data by YCharts

CHAPEL HILL, NC (TheStreet) -- Cempra (CEMP - Get Report) shares are up 7% to $12.54 Tuesday on the announcement of clean results from a heart rhythm safety study of of its experimental antibiotic solithromycin.

A single supra-therapeutic (above therapeutic level) dose of solithromycin caused no adverse effect on heart rhythm in patients, according to results from what is known as a  "thorough Qt" study released today by Cempra.  

Why would a safety study be so meaningful for a drug that is already in phase III studies?

Recall, solithromycin is tied to the legacy of Sanofi's SNY Ketek, a similar antibiotic which never lived up to big sales expectations because of significant toxicity issues which cropped after approval. Solithromycin, like Ketek, is a next-generation macrolide, so investors are watching closely for the appearance of any potential safety problems.

Macrolides can cause heart rhythm abnormalities in patients -- severe enough in some cases to increase the risk of sudden death.  This is why investors were anxiously awaiting the results from Cempra's thorough Qt study of solithromycin. Based on the data announced today, it appears the safety risk is gone, and in fact, solithromycin may have a comparative advantage over other macrolide antibiotics when it comes to heart safety. 

Last July, I said Cempra's solithromycin has the potential to be a blockbuster antibiotic. Obviously, this will require positive results from ongoing phase III studies, results from which are expected later this year. Today's safety update is also important because it helps to remove an overhang.

Sobek is long Cempra.

David Sobek has been writing on biotech for a number of years through various outlets with a general focus on small cap oncology and antibiotics companies. He received his PhD in political science from Pennsylvnia State Univeristy in 2003 and a BA in international relations from The College of William and Mary in 1997.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CEMP $33.41 -2.90%
AAPL $107.72 -4.47%
FB $87.23 -2.46%
GOOG $597.79 -3.31%
TSLA $238.68 -4.20%

Markets

Chart of I:DJI
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASDAQ 4,636.1050 -140.4030 -2.94%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs