March 27, 2025

Dermata shares rise on positive acne treatment trial results

Investing.com -- Shares of Dermata Therapeutics, Inc. (Nasdaq: DRMA) climbed 60% following the announcement of successful Phase 3 trial results for their acne treatment, XYNGARI™, which met all primary endpoints. The company’s stock reacted positively as the market absorbed the news of the potential new once-weekly topical treatment for moderate-to-severe acne.

The San Diego-based biotech firm reported that XYNGARI™ achieved highly statistically significant and clinically meaningful improvement in acne, distinguishing itself as the first once-weekly topical product candidate to demonstrate clinical benefit in a Phase 3 clinical trial for this condition. The trial, known as STAR-1, enrolled 520 patients and showed a statistically significant difference in treatment success, inflammatory lesion count, and non-inflammatory lesion count at the end of 12 weeks compared to placebo.

Dr. Sunil Dhawan, a clinical investigator for the trial, expressed optimism about the product’s once-weekly application, suggesting it could improve patient compliance compared to existing treatments that require daily application. Gerry Proehl, Dermata’s CEO, also highlighted the product’s uniqueness and the company’s eagerness to advance discussions with potential partners.

The STAR-1 study’s success sets the stage for the upcoming Phase 3 STAR-2 trial, slated for the second half of 2025. If the STAR-2 study yields positive results, the Phase 3 program will support the filing of a new drug application with the U.S. Food and Drug Administration. Dermata’s announcement underscores the company’s commitment to providing a novel treatment option for the over 30 million acne patients seeking treatment in the U.S. annually.

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