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Ligand (LGND) Up 9% on FDA Nod for Molluscum Infection Gel

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Shares of Ligand Pharmaceuticals rose 8.8% in after-market hours on Jan 5 after management announced that FDA has approved its recently acquired berdazimer gel for the topical treatment of molluscum contagiosum (molluscum) in individuals aged one year and older.

The topical gel will be marketed by Ligand under the trade name Zelsuvmi. The medication is expected to be launched commercially in the second half of this year.

Following the FDA approval, Zelsuvmi is the first at-home treatment option available for molluscum. The agency also approved this gel as the first novel drug for treating molluscum infections.

Ligand added berdazimer gel to its portfolio after it acquired certain assets of Novan for $12.2 million. Alongside the gel, it also acquired all assets related to NITRICIL drug delivery technology platform and rights to Bayer-partnered Sitavig program.

In the past year, shares of Ligand have gained 5.8% against the industry’s 11.4% decline.

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A highly contagious viral skin infection, molluscum is marked by lesions that may appear anywhere on the body. Management estimates that nearly six million Americans, mostly children, are infected each year.

The FDA approval is based on data from two late-stage studies – B-SIMPLE 4 and B-SIMPLE 2. Itshowed that study participants treated with Zelsuvmi reduced lesion counts when used once a day. The medication was also well tolerated in study participants.

Zelsuvmi will compete with Verrica Pharmaceuticals’ (VRCA - Free Report) Ycanth (cantharidin) topical solution for market share. Last July, Verrica’s Ycanth was approved by the FDA as the first treatment for molluscum infection in the United States. Ycanth is approved for use in individuals aged two years and older.

Though both Ycanth and Zelsuvmi are topical therapies approved to treat molluscum infection in adults and pediatric patients, there is a difference in administration. The Ligand medication is a topical gel which can be applied at home. On the flip side, Verrica medication is a topical solution which can be administered with the help of a healthcare professional. This is likely to give Ligand a competitive edge once it commercially launches Zelsuvmi in the country.

 

Zacks Rank & Key Picks

Ligand currently carries a Zacks Rank #4 (Sell).

A couple of better-ranked stocks in the overall healthcare sector are Aquestive Therapeutics (AQST - Free Report) and CytomX Therapeutics (CTMX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for Aquestive Therapeutics for 2023 have improved from a loss of 25 cents per share to a loss of 7 cents. During the same period, estimates for 2024 have narrowed from a loss of 56 cents to a loss of 34 cents. Shares of AQST have surged 151.6% in the past year.

Aquestive Therapeutics’ earnings beat estimates in three of the last four quarters while missing once. The company witnessed an average surprise of 70.58%. In the last reported quarter, AQST’s earnings beat estimates by 72.73%.

In the past 60 days, estimates for CytomX Therapeutics for 2023 have swung from a loss of 37 cents per share to earnings of 2 cents. During the same period, estimates for 2024 have narrowed from a loss of 51 cents to a loss of 6 cents. Shares of CTMX have lost 47.6% in the past year.

CytomX Therapeutics’ earnings beat estimates in three of the last four quarters while missing once, the average surprise being 45.44%. In the last reported quarter, CytomX Therapeutics’ earnings beat estimates by 123.53%.

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