Shares of biopharma company Reata Pharmaceuticals ( NASDAQ: RETA) climbed up 156.7%in October, according to data from S&P Global Market Intelligence. Shares had actually been stagnant because January.
Reata’s huge month came in three stages.
A top drug class has been the gift that keeps on offering for Reata. Image source: Getty Images.
However the huge jump– 57%– came on Oct. 14, when Reata announced the favorable top-line results of a midstage trial involving one of those drugs, omaveloxolone, and its prospective to treat Friedreich’s ataxia, a neurodegenerative disease caused by abnormally low levels of a protein called frataxin.
The outcomes were especially considerable because Friedreich’s ataxia currently has no approved treatment for slowing the progression of the disease. Over the next numerous days, as the marketplace digested this news, Reata’s shares increased an additional 30.5%for a total gain of 156.7%for the month.
The next step for Reata, of course, is to attempt to get omaveloxolone authorized by the FDA and other regulatory companies as a treatment for Friedreich’s ataxia. Offered the lack of any current approved treatment, quick action would promise, but obviously, there’s no warranty.
For financiers searching for big gains from pharmaceutical stocks, the ship has probably cruised as far as this specific drug and this particular disease are worried. Yes, full FDA approval would most likely enhance shares a bit further, however they’ve currently increased so much that the biggest gains are almost certainly in the rearview mirror.
Nevertheless, it’s worth noting that Reata has actually now had two current successes with this drug class: On Nov. 11, the business reported positive results from a phase 3 trial of bardoxolone to treat persistent kidney illness triggered by Alport syndrome. The stock hardly budged in action.