Shares of US biotechnology company Rita Pharmaceuticals Inc jumped 175% to a one-year high in early trade on Wednesday. Rita’s shares jumped after the US Food and Drug Administration (FDA) approved Skyclaris, a drug for the rare disease of Rita.
The company’s stock soared to $86, the highest since December 2021.
Rita stock was one of the top gainers on the US stock exchanges on Wednesday.
Shares of Rita closed up 1% at $31.17 on Tuesday.
The US drug regulator on Tuesday gave its approval for Rita Pharmaceuticals Inc’s drug to treat Frederick’s ataxia, a rare genetic disorder that causes progressive damage to the nervous system.
The biotech firm has priced the drug at a bulk acquisition cost of $370,000 a year.
Reata’s Skyclarys is the first drug therapy to receive US FDA approval for the treatment of Friedreich’s ataxia.
Rita’s estimates suggest that there are 5,000 patients with Friedrich’s ataxia disorder in the United States.
Friedrich’s ataxia is a rare neuromuscular disorder that causes muscle weakness and loss of coordination. Patients with this disorder experience progressive difficulty in walking.
Rita Pharmaceuticals’ case for FDA approval was based on additional data and mid-stage studies. The firm said its study showed that patients taking the drug experienced improvements in neurological functions such as speaking, swallowing and standing when compared to a placebo.
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