Why Reata Pharmaceuticals Stock Skyrocketed This Week
Shares of the rare disease specialist Reata Pharmaceuticals (NASDAQ: RETA) jumped by 94.1% over the first three and a half days of trading this week, according to data provided by S&P Global Market Intelligence. The big gain after Reata announced that the Food and Drug Administration (FDA) approved its Friedreich's ataxia candidate, Skyclarys (omaveloxolone), for patients 16 and older.
Friedreich's ataxia is a recessive genetic disorder characterized by the progressive loss of motor abilities and sensation due to nerve damage. Skyclarys is the first FDA-approved treatment for the ultra-rare genetic disorder.
Although this condition only affects approximately 5,000 individuals in the U.S., Wall Street still thinks Skyclarys could rake in over $1 billion a year in U.S. sales at peak. That's a big opportunity for a company with a market cap of $3.1 billion at the time of this writing.
Source Fool.com
