Shares of Alterity Therapeutics ATHE were up 7.8% on Jul 17 after the company announced positive interim data from the phase II ATH434-202 study evaluating its lead pipeline candidate ATH434 for treating patients with multiple system atrophy (MSA), a rare neurodegenerative disease. The study enrolled 10 participants with advanced MSA.

Per the press company, interim analysis results from the open-label ATH434-202 study included clinical and biomarker data from seven participants who were treated with ATH434 for six months and neuroimaging data from three participants who were treated with ATH434 for 12 months.

Data from the same showed that 43% of the participants displayed improvement on the Unified MSA Rating Scale Part I (UMSARS1), indicating reduced disability in activities of daily living following six months of treatment. Also, 29% of the participants had stable or improved neurological symptoms at the same time.

Patients who were treated with ATH434 had favorable clinical and biomarker outcomes, which underlined the potential of ATH434 to modify the course of MSA treatment.

Shares of Alterity have plunged 14.2% so far this year compared with the industry’s decline of 1%.

Phase I studies conducted on ATH434 showed that the candidate is well tolerated and achieved brain levels that are comparable to efficacious levels seen in animal models of MSA.

Final 12-month data from the open-label ATH434-202 study is expected in the first half of 2025.

Alterity is currently evaluating ATH434 across two separate mid-stage studies. Apart from the ATH434-202 study, which evaluates ATH434 in more advanced MSA, the phase II ATH434-201 study is evaluating ATH434 in early-stage MSA.

An oral candidate, ATH434, is designed to inhibit the aggregation of pathological proteins implicated in neurodegeneration.

ATH434 has been granted orphan drug designation in treating MSA indications by the FDA and the European Medicines Agency.

Zacks Rank & Stocks to Consider

Alterity currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks in the biotech sector are Entrada Therapeutics, Inc. TRDA, Compugen Ltd. CGEN and Beyond Air, Inc. XAIR, each sporting a Zacks Rank #1 (Strong Buy) at present.You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for Entrada Therapeutics’ 2024 loss per share have narrowed from 14 cents to 13 cents. Loss per share estimates for 2025 have narrowed from $3.44 to $3.21. Year to date, shares of TRDA have jumped 13.4%.

TRDA’s earnings beat estimates in two of the trailing four quarters and missed the same on the remaining two occasions, the average surprise being 42.18%.