There’s great news circulating about Xortx Therapeutics (NASDAQ:XRTX) today. In a clinical study, XORLO, Xortx’s orally administered brand of oxypurinol, demonstrated a “substantial increase” in bioavailability. This news caused a huge spike in XRTX stock this morning, though it has since lost some momentum.
Xortx Therapeutics is a pharmaceutical company, and one of its primary clinical programs focuses on autosomal dominant polycystic kidney disease (ADPKD). That’s a rare disease that, according to the company, affects over 10 million individuals worldwide.
The study, XRX-OXY-101, evaluated XORLO’s effectiveness in treating ADPKD. The trial involved 88 patients and found that XORLO was “well tolerated across the various dosing regimens.” There were no identified safety issues.
The most notable result, however, was a “substantial increase in the bioavailability” of XORLO. This doesn’t necessarily mean the drug will be effective in treating ADPKD. However, it does suggest that oxypurinol can be efficiently introduced into and absorbed by the body, under the right circumstances.
What’s Happening With XRTX Stock?
The market’s response to the clinical trial results concerning XORLO was immediate. XRTX stock shot up 50% early in today’s trading session. However, shares lost ground and were soon up by “only” 30%.
That’s still an impressive rally. Is it justified, though? It may be, as the recent results for XRX-OXY-101 and XORLO were quite encouraging.
The clinical trial provided some valuable data that the company says it will incorporate into the new drug’s upcoming Phase 3 trial. For instance, XORLO should probably be taken with a meal. The study’s results showed an average increase of exposure of around 40% in oxypurinol when it’s taken with food, compared to when the patient is fasting.
The results also suggested that oxypurinol delivered via the XORLO formulation achieved better bioavailability, compared to non-formulated oxypurinol by itself. All in all, the study’s results point to XORLO as a superior formulation to administer oxypurinol, as long as it’s done under the right conditions.
As for XRTX stock, it’s currently struggling to get and stay above the crucial $1 level. However, shares could move much higher in 2023 if Xortx Therapeutics continues to achieve breakthrough moments with XORLO.
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On the date of publication, David Moadel 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.