NASH drug maker gets good results and a stock bump

Shares of NASH drug developer NGM Biopharma rose 17% yesterday, which feels like the equivalent of at least double that given that rising fears of a coronavirus pandemic caused stocks to plummet across the globe.

Investors were reacting to new mid-stage clinical trial results that showed NGM Bio’s drug, called aldafermin, demonstrated impressive reductions in liver fibrosis and NASH resolution compared to a placebo.

The ability of aldafermin to skinny up fattened livers after just six months of treatment might allow NGM Bio to run a shorter Phase 3 clinical trial and narrow the lead enjoyed by rivals developing their own NASH treatments, CEO David Woodhouse argued on a conference call. 

But to derive that benefit, NASH patients required daily injections of aldafermin, which makes the drug a much bigger hassle to take than pills being developed by rivals. 

Next up on the NASH calendar: an FDA advisory panel on April 22 that will review Intercept Pharma’s obeticholic acid.