Why Is Evoke Pharma (EVOK) Stock Up 130% Today?

Today, California-based Evoke Pharma (NASDAQ:EVOK) is up a jaw-dropping 130% so far on surprising regulatory news. This morning, Evoke announced that the U.S. Food and Drug Administration (FDA) has granted the company new drug product exclusivity for its GIMOTI nasal spray. Now, investors are clearly up on EVOK stock following the promising development.

rows of pills on a table representing pharmaceutical stocks
Source: Iryna Imago / Shutterstock.com

What do you need to know about EVOK today?

Well, according to Evoke Pharma’s press release this morning, the company now has exclusive marketing rights for its GIMOTI drug for the next three years. The nasal spray is a new treatment for symptoms associated with diabetic gastroparesis, or DGP. As per the Hatch-Waxman Act, Evoke is protected from generic drug competition for the duration of the three-year period.

Evoke Pharma Chief Business Officer Matt D’Onofrio shared some positive words on the announcement:

“Receiving marketing exclusivity rights from the FDA for GIMOTI further establishes our proprietary concept of delivering an effective medication through the nasal pathway for the treatment of symptoms associated with diabetic gastroparesis. We are excited to continue our mission of getting GIMOTI to patients who are in need of a non-oral treatment for gastroparesis and capitalize on this large and growing market opportunity in the U.S.”

So, what else is going on with EVOK stock lately?

EVOK Stock Skyrockets on FDA Exclusivity

Evoke has had something of a subdued past few months. Since hitting a four-year high in share price in August 2020, the company has generally been on a downward descent. Even after today’s leap, it’s trending a fair bit below previous peaks. Down from above $5 per share in August 2020, EVOK stock is currently trading around the 92 cent mark.

Still, today’s news comes hot off of Evoke Pharma’s announcement last week that its GIMOTI nasal spray was added to the Texas Medicaid Preferred Drug List.

All told, it seems Evoke Pharma has garnered attention outside of the stock market. Time will tell whether the company’s novel nasal treatment continues to boost shares. Regardless, EVOK stock investors are surely in good spirits today.

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On the date of publication, Shrey Dua did not hold (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.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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