Renalytix (NASDAQ:RNLX) stock is rising higher on Friday after the medical company got marketing permission from the Food and Drug Administration (FDA).
According to a press release from Renalytix, the FDA is allowing the company to market its KidneyIntelX.dkd prognostic test. This test is designed to provide care guidance for patients with Type 2 diabetes and early-stage chronic (diabetic) kidney disease.
KidneyIntelX.dkd is an artificial intelligence (AI) test that sorts patients into three categories of risk: low, moderate, and high. This provides them and healthcare providers with the risk of kidney decline over five years.
Renalytix notes that KidneyIntelX.dkd is a simple blood test that’s already been used on 10,000 patients in the U.S. after being introduced as a Laboratory Developed Test (LDT). Additionally, there’s a large market of patients eligible for the test, with that number sitting at 14 million in the U.S.
James McCullough, CEO of Renalytix, said the following in a news release:
“With this approval a new class, Prognostic Test for Assessment of Chronic Kidney Disease Progression, has been established by the FDA, providing a roadmap for future expansion of KidneyIntelX into new indications and products.”
What This Means for RNLX Stock
Investors in RNLX are set to benefit from this news as it opens the company’s KidneyIntelX.dkd test up to new patients. That could result in increased earnings for Renalytix and an increased stock price.
That news is already bringing heavy trading to RNLX stock, with some 2.4 million shares of the stock. To put that in perspective, the company’s daily average trading volume is closer to 47,000 shares. This also has RNLX up 44.8% as of Friday morning.
Investors looking for more of the most recent stock market news will want to keep reading!
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On the date of publication, William White 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.
