Dermira's investors were feeling the heat Thursday as the biotechnology stock slid more than 4 percent.
Dermira's experimental therapy, an easy-to-use topical wipe for excessive underarm sweating, was successful in two late-stage studies, the company announced late Wednesday. The stock edged higher after hours Wednesday, but erased those gains in Thursday's regular session to trade around $30 a share.
Based on the results of the two studies, Dermira said it plans to submit a New Drug Application (NDA) to the FDA by the second half of 2017 for potential approval.
Analysts at Leerink raised their price target to $47 per share on Thursday for Dermira, which also develops treatments for skin ailments like psoriasis and acne.
"DERM represents a unique investment opportunity, with a highly experienced and proven management team developing three late-state dermatology assets, each with robust, positive Phase II data and a multi-hundred million dollar commercial potential," Leerink's Seamus Fernandez, Le-Yi Wang, Richard Gross and Mark Sevecka wrote.
Still, while Dermira's shares are up more than 95 percent in the past 12 months, they have fallen more than 11 percent so far this year.