Ascendis Pharma A/S (NASDAQ: ASND) shares jumped over 40% in premarket on Friday following the news that its competitor, Versartis Inc. (NASDAQ: VSAR) late-stage clinical trial missed its primary endpoint. Versartis shares plummeted down over 86 percent during midday Friday.
Both companies manufacture and research growth hormone therapies. Versartis was in Phase 3 clinical trial of its somavaratan treatment for pediatric growth hormone deficiency. Ascendis has a similar therapy like the one Versartis has, but is currently still in clinical trial.
In the 12 month clinical trial, patients who received somavaratan twice monthly report growth of 9.44 cm, versus 10.70 cm for those receiving Genotropin daily. The significant difference compared to other competitors’ caused disappointment for the company.
Jay Shepard, President and CEO of Versartis, said the company will be researching into the treatment again and provide future updates.
Wedbush analyst Liana Moussatos raised Ascendis Pharma's price target nearly 81% to $65 on Friday, calling Versartis' human growth hormone product "no longer a threat."