As trading begins this morning, there’s one biotech play in particular on which you’ll want to keep your eyes glued. Erytech Pharmaceuticals (NASDAQ:ERYP) is making a splash with the announcement of its new fast-track designation from the FDA. As such, ERYP stock is rallying in a huge way.
Erytech is a Massachusetts-headquartered, clinical-stage biotech outfit. The company specializes primarily in the development of therapeutics which treat cancers and rare diseases. The news around the company today comes from the FDA’s ruling on its eryaspase drug.
Eryaspase is a product of Erytech which treats acute lymphocytic leukemia, or ALL. The disease, a cancer of the blood and bone marrow, is especially prevalent in children. In fact, it primarily affects children under five years of age. However, the disease is even deadlier in adults; four out of five ALL deaths are adult patients.
Asparaginase has been one of the primary enzymes for the treatment of ALL, however, it was discontinued because it was linked to hypersensitivity which limited treatment in patients. Erytech’s eryaspase is meant to fill the gap asparaginase left with its discontinuation.
ERYP Stock Booms With FDA Fast-Tracking of Eryaspase
In a press release today, the company announced the fast-tracking of eryaspase by the FDA. Fast track designation is huge news for the company, as it will allow the company to potentially get its product to market sooner. This will be the second fast track designation for eryaspase; it also has fast track designation after proving effective at treating pancreatic cancer. Next steps for the company likely include further testing of eryaspase in ALL patients.
For now, investors in ERYP stock are reaping the benefits of the designation. Shares of ERYP are up over 116% on the good news. The company is also seeing a huge volume of ERYP stock move today; nearly 30 million shares are trading, against the daily average of just 34,000.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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