The shares of Avanir Pharmaceuticals Inc (NASDAQ:AVNR) have soared after successful Phase II clinical trial results of AVP-923, which was successful in reducing the agitation of patients suffering from Alzheimer. Avanir Pharmaceuticals Inc (NASDAQ:AVNR) share prices soared by $5.75 and closed after a hike of 85.31 percent.
According to the official press release from Avanir Pharmaceuticals Inc (NASDAQ:AVNR), the drug reduced agitation in 220 patients participating in the clinical trial. The Chief Medical Officer of Avanir, Joao Siffert, MD, said, “With no FDA approved drugs for the treatment of agitation in Alzheimer’s disease, we believe these results represent a breakthrough for patients.” As mentioned by Avanir, as many as 5.4 million Americans suffer from Alzheimer and the number is likely to increase with aging population.
Siffert further added,
“We are extremely excited with the prospect of bringing a potential treatment that can provide clinically meaningful relief to these patients and reduce caregiver burden.”
It might seem a bit overreaction from the investors considering that the drug only treats a particular symptom of Alzheimer. However, this trial is a huge success considering that there are no FDA-approved drugs for Alzheimer and this drug treats one of the primary problems i.e. agitation of the disease.
Avanir Pharmaceuticals Inc (NASDAQ:AVNR) further added that the company is likely to discuss the matter with FDA and the European Medicines Agency (EMA) for further advancement of the treatment. The company is likely to present results of this study at the American Neurological Association’s Annual Meeting in Baltimore, MD organized between 12 and14 October 2014.
Avanir Pharmaceuticals Inc (NASDAQ:AVNR) has a net market cap of $1.16 billion and the Avanir has 74% institutional ownership of the company.
This article has been written by Prakash Pandey.