US biotech firm Reata’s stock zooms 175% after FDA nod
Shares of the US biotechnology company Reata Pharmaceuticals Inc on Wednesday surged 175% to hit a one-year high in early trading. The surge in Reata shares was prompted after the US Food and Drug Administration (FDA) approved Reata’s rare disease drug Skyclarys.
The company stock soared to $86, its highest since December 2021.
The Reata stock on Wednesday was among the top gainers across the US stock exchanges.
On Tuesday, Reata shares ended 1% higher at $31.17.
The US drug regulator gave its approval on Tuesday to Reata Pharmaceuticals Inc’s drug for the treatment of Friedreich’s ataxia, a rare genetic disorder that causes progressive damage to the nervous system.
The biotech firm has set a price of the drug at a wholesale acquisition cost of $370,000 annually.
Reata’s Skyclarys is the first drug therapy to get the US FDA approval for the treatment of Friedreich’s ataxia.
Reata estimates show that there are 5,000 patients of disorder Friedreich’s ataxia in the United States.
Friedreich’s ataxia is a rare neuromuscular disorder that causes weakness in muscle and loss of coordination. Patients with this disorder experience progressive difficulty in walking.
Reata Pharmaceuticals’ case for the FDA approval was based on additional data and a mid-stage study. The firm said its study showed that patients who took the drug experienced an improvement in neurological functions such as speaking, swallowing and standing, compared with a placebo.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.