Stock To Watch: Menlo Therapeutics (MNLO) Awaits Serlopitant Data This Month

(RTTNews) - Shares of Menlo Therapeutics Inc. (MNLO) are on the move as the Company gears up to reporting clinical trial data of its lead drug candidate Serlopitant in the coming months.

Serlopitant is being developed for the treatment of pruritus, or itch, associated with various conditions like prurigo nodularis, psoriasis, and atopic dermatitis.

In December 2018, the Company successfully completed a phase II clinical trial of Serlopitant for the treatment of pruritus associated with psoriasis. The trial results were published in the February 3, 2020, online Journal of the American Academy of Dermatology.

Menlo & Foamix merger:

In November 2019, Foamix Pharmaceuticals Ltd. and Menlo signed a definitive merger agreement to create a combined biopharmaceutical company. The transaction is expected to be completed in late Q1/early Q2 of 2020.

Near-term Catalysts:

-- A phase II trial of Serlopitant in chronic pruritus of unknown origin is underway, with results expected in late-February. -- Two phase III clinical trials - one in the U.S. and one in Europe - evaluating Serlopitant as a treatment for pruritus associated with Prurigo Nodularis are underway, with results expected in March or April of 2020. -- FMX103, an investigational drug for rosacea, from the stable of Foamix is at the FDA altar, awaiting a decision on June 2, 2020. -- A phase II clinical trial of FCD105, also from the stable of Foamix, for treatment of moderate to severe acne, is underway, with top-line data expected in mid-2020.

Serlopitant trials that failed:

In April 2018, Menlo's phase II clinical trial of Serlopitant for the treatment of pruritus in adults and adolescents with a history of atopic dermatitis, dubbed ATOMIK, did not meet its primary or key secondary efficacy endpoints.

Another phase II study that failed in 2018 was TUSSIX, which evaluated Serlopitant for the treatment of refractory chronic cough.

MNLO has traded in a range of $2.69 to $9.03 in the last 1 year. As of this writing, the stock is at $5.12, up 10.11%.