Maxim Group Downgrades Ritter Pharmaceuticals (RTTR) to Hold

Maxim Group downgraded Ritter Pharmaceuticals (NASDAQ: RTTR) from Buy to Hold.

Analyst Jason McCarthy commented:

• The data release is confusing as the company states: "The primary endpoint met statistical significance, in which 40% of the pooled dosing group and 26% of the placebo group responded (p=0.0159)."
• But then States:
• In the entire study population taking at least one dose of drug (n=368), including the excluded center, the comparison between the pooled treatment groups and the placebo group narrowly missed statistical significance (p=0.0618), in which 40% of the pooled treatment group responded compared to 31% of the placebo group.
• "Due to significant irregularities demonstrated at one study center, the data from this center were excluded from the primary analysis population (n=296). The Company is continuing to examine this site’s significant differences from the other clinical centers".
• Our Thoughts: This is unusual at best. The study missed statistical significance. You can't just exclude a fourth of patients because there are irregularities at one site. A high placebo rate seemed to hurt the trial results. On the other hand we recognize this is a phase II study, not a pivotal trial. Can Ritter raise the capital to move this to a pivotal trial and with a delta of just 14%, should they? Next Step: End of Phase II meeting (fall 2017).

For an analyst ratings summary and ratings history on Ritter Pharmaceuticals click here. For more ratings news on Ritter Pharmaceuticals click here.

Shares of Ritter Pharmaceuticals closed at $1.95 yesterday.

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