It’s always a great day when a company finds a new way to treat an illness, especially when that illness is quite rare. ChemoCentryx (NASDAQ:CCXI) holders are having a better day than most, with their portfolios bursting at the seams thanks to the company’s big gains. CCXI stock is receiving some love from Wall Street this morning as it receives Food and Drug Administration (FDA) approval for one of the most important drugs in its pipeline.
Vasculitis is a rare autoimmune disorder. Those who suffer from it experience thickening of the arteries. It’s a very painful condition, and it’s incurable as of yet. It also can lead to devastating damage if left untreated, with organs suffering as a result of decreased blood flow. And while there have been many a treatment for this uncommon condition, the last commercialized treatment is over 10 years old.
Enter ChemoCentryx, the biopharma company from the San Francisco Bay area who focuses heavily on rare autoimmune conditions. The company is helping to alleviate vasculitis patients with a new treatment; thanks to FDA approval, the product can finally hit pharmacies. Investors are predictably seeing huge gains in CCXI stock.
CCXI Stock Rockets After Vasculitis Treatment Gets FDA Approval
The company is providing an update this morning on the FDA’s decision on its drug avacopan. The orally administered drug is getting the official green light of approval from the agency, and it will be reaching shelves with the brand name Tavneos in the near future.
According to the company, this isn’t the end-all, be-all for Tavneos either. The update includes comments suggesting the company will test the drug’s efficacy in treating other rare illnesses as well; more explicitly, ChemoCentryx says it will be looking into the drugs effectiveness at treating an unspecified skin condition.
Of course, when a biopharma play comes up on FDA approval for any drug, it typically spells big leaps in valuation for stock. CCXI stock is on an absolute tear this morning, though. This is thanks in part to the rarity of the illness its drug treats. All in all, the company is up over 56%. It is cooling slightly after shooting up over 60% immediately upon the opening bell. Trading volume is up gigantically as well. More than 47 million shares of CCXI stock are trading hands today, against a daily average of 1.8 million.
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.