Shares of Dipexium Pharmaceuticals, Inc. (NASDAQ:DPRX) Plummet 84% on Phase 3 Trial Failure

Late stage pharmaceutical company focusing on diabetic foot ulcers, Dipexium Pharmaceuticals, Inc. (NASDAQ:DPRX), reports failures during the Phase 3 trial of its drug Locilex.

Dipexium Pharmaceuticals Inc. (DPRX) stock plunged 84% on October 25 after the Nasdaq-listed company reported massive failures on the Phase 3 trial of its Locilex (pexiganan 0.8%) cream to treat diabetic foot ulcers.

Dipexium traded as low as $1.95 per share during the pre-market session October 25, down 84% from its closing price of $12.75 the day before. DPRX traded at $2.83 per share late afternoon on October 25.

Dipexium said the Phase 3 trial for its Locilex (pexiganan 0.8%) cream failed to meet its primary and secondary endpoints.

The drug did not aid wound closure for diabetic foot ulcers as compared to a placebo. Locilex also failed its secondary endpoint of eradicating bacteria. (For more, see Is This Diabetes Stock a Better Bet Than MannKind?)

“Although we are disappointed with these results, we are continuing to evaluate the data and will consider potential regulatory pathways forward in other possible clinical indications based on an evaluation of all data emerging from the Phase 3 studies,” said Dipexium CEO David Luci.

Foot infection is the most common diabetic complication that could require hospitalization and may lead to amputation of the lower limb in affected patients. (See also: Qualcomm and Medtronic Team Up to Tackle Diabetes.)

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Dipexium Pharmaceuticals, Inc. (NASDAQ:DPRX) shares are trading -78.04% on the news and in the range of $1.90 – 3.40 during the current trading session.  When taking a look at which direction the stock might be headed, investors often look to brokerage analysts who cover the stock.  Sell-side research firms on Wall Street currently have a consensus one-year price target of $27.25 on the stock.  This is according to brokerage analysts polled by Thomson Reuters First Call.

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Sell-side analysts are projecting earnings per share of $-0.47 for the next fiscal quarter.  For the current year, analysts are predicting earnings of $-2.10 per share according to First Call.

In looking at where the stock is trading on a technical level, the stock is trading -80.15% away from its 50-day moving average of $14.10.  Based on the most recent available data, the equity is -84.23% off of its 52-week high of $17.75 and +47.37% away from its 52-week low which is $1.90.

Today, the stock opened at $1.95 and the last bid at the time of writing stood at $2.80.  During the session thus far, the equity dipped down to $1.90 and touched $3.40 as the high point.  Dipexium Pharmaceuticals, Inc. (NASDAQ:DPRX) has a market cap of $29.11M and has seen an average daily volume of 63,388 over the past three months.

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