Aquinox Pharmaceuticals (AXQP) is enjoying a wild ride.The stock gained nearly 2,000% from its closing price of $1.79 per share on Thursday.

The clinical stage pharmaceutical company is benefiting from its improved quarterly earnings and positive Phase 2 trial results of AQX-112, a drug for patients suffering from bladder pain syndrome/interstitial cystitis (BPS/IC).

The stock price of the Aquinox Pharmaceuticals surged as much as 400% on Friday after releasing its financial performance and up to 365% to $55.75 per share on Monday.

 

Aquinox Pharmaceuticals (AXQP)
Aquinox Pharmaceuticals (AXQP)

Aquinox Pharmaceuticals financial and clinical trial results

During the second quarter, Aquinox Pharmaceuticals reported that its net loss declined to $4.8 million from $5.4 million in the same period a year ago. The improvement was due to a decrease in research and development (R&D) expences.

Aquinox Pharmaceuticals reported that its R&D expenses were $3.6 million, down from $4.6 million last year. The company is close to completing theLlEADERSHIP and FLAGSHIP trials for the AQX-112 drug.

The clinical stage biopharmaceutical company ended the quarter with $29 million in cash, cash equivalents and investments.

Aquinox Pharmaceuticals reported top-line results from its LEADERSHIP Phase 2 clinical trial for AQX-1125 in BPS/IC. According to the company, the results demonstrated encouraging trend in pain reduction for patients treated with AQX-1125 compared to placebo. Forty-nine percent (49%) of patients also achieved a clinically meaningful improvement in pain.

“Consistently positive results from multiple secondary endpoints have strengthened our confidence in the further development of AQX-1125 for BPS/IC.The encouraging effect of AQX-1125 observed on the primary endpoint of reduction in pain together with several statistically significant secondary endpoints, underscore the potential of AQX-1125 as a once-daily, oral therapy for this debilitating disease,” said David Main, President and CEO of Aquinox Pharmaceuticals.

Aquinox Pharmaceuticals stock price “fairly valued”

In an interview with Benzinga, Biren Amin, an analyst at Jefferies commented (apparently not in a joking manner) that the shares of Aquinox Pharmaceuticals are fairly valued following the results of its Phase 2 trial for AQX-1125. However, he noted that it is uncommon to miss a primary endpoint and hit a secondary endpoint value.

Amin estimated that Aquinox Pharmaceuticals would generate around $600 million in potential revenue by 2025 based on his assumption of a 25% market penetration. He added that the company is attractive because it has little or no competition in the area of BSP/IC.

The shares of Aquinox Pharmaceuticals are trading $23.25 per share, up by more than 123% at the time of this writing, around 2:34 in the afternoon in New York.

We wish luck to investors, but have a feeling that this could end badly.