Neothetics Inc. ($NEOT) stock lost over 32% in the past one year. However, the company is likely to see the reversal in the trend as it announced starting a Phase 2 clinical trial, LIPO-202-CL-31, evaluating lead product candidate LIPO-202 for the reduction of submental subcutaneous fat (fat under the chin). The study will involve 150 subjects.
The news had positive impact on the stock price as it has gained nearly 7% in the past five days. The company had reported its third quarter loss at $2.4 million or $0.17 per share, down from $1.26 per share net loss it had reported for the corresponding quarter of the previous year.
Neothetics is a clinical stage specialty Pharmaceuticals company. The main focus of the company is on development and commercialization of therapeutics for the aesthetic market. The company is working on treatments for localized fat reduction and body contouring. The drug candidate under consideration LIPO-202 is designed for treating localized areas of fat that requires no pain management before or after treatment and no downtime without damage to nearby tissues. The medication is injectable.