Today, investors in Orphazyme (NASDAQ:ORPH) and ORPH stock are seeing impressive gains. Shares of this biopharma company are currently up more than 4% at the time of writing on a very green day in the overall market. Shares traded more than 10% higher in earlier trading, but have pared some of these gains.
Indeed, it appears risk-on sentiment is taking hold in the market today. Shares of most high-growth stocks are taking off as investors appear to be pricing in optimism with the strength of this current economic recovery. For biotech stocks like Orphazyme, any up day is a good day. Indeed, this stock has been on an otherwise rocky climb over the past year.
ORPH stock is one biotech with an impressive pipeline of potential drugs. The company’s core candidate, Arimoclomol, is an investigational heat-shock protein amplifier. This treatment is targeted at patients suffering from Niemann-Pick disease type C. This is a rare disorder, but one with a high unmet need for treatment options.
Unfortunately, OPRH stock has taken a series of hits in recent months. A mid-June denial by the Food and Drug Administration (FDA) of Oprhazyme’s Ariclomol candidate sent ORPH stock from nearly $78 per share to around the $10 level shortly thereafter. Today, investors can pick up ORPH stock at around $5 per share.
However, let’s dive into what investors are getting excited about with Orphazyme today.
Positive Trial Results Boosting ORPH Stock
Today, Orphazyme announced some positive results from a Phase 2/3 trial for Arimoclomol. These results appeared in the Journal of Inherited Metabolic Disease.
According to the company’s press release, a statistically significant effect in favor of Arimoclomol was observed. This amounted to a 65% reduction in disease progression and other positive outcomes. The company notes that this treatment was well-tolerated, with serious adverse events mitigated by the use of this treatment.
For investors in ORPH stock, this is good news. The company is expecting a European regulatory review in Q4 of this year. Accordingly, some investors appear enticed by these positive results, enough to take a flyer on this company.
However, given the previous FDA letdown, it appears today’s sentiment boost in ORPH stock is already starting to wane. Indeed, it appears many investors are content to wait on the sidelines until an approval is received. Until then, this is likely to remain a highly volatile stock.
On the date of publication, Chris MacDonald 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.