ChemoCentryx Inc (NASDAQ: CCXI) was one of the biggest gainers in Tuesday’s trading session. The stock shot up by 281.27% to close the day at $30.73. This followed news that the company’s treatment candidate showed potential in the treatment of a rare autoimmune disease called anti-neutrophil cytoplasmic antibody vasculitis. This is a rare condition that can cause organ failure once it inflames blood vessels.
The company announced that the phase 3 trial of its investigational treatment had met its primary goals. It stated that, of the 331 patients that took part in the program, 72% of them reported improvement by the 26th week. Another 65% of the patients sustained remission in a year. The treatment also hit several secondary endpoints that included kidney function and a better quality of life.
Analysts have expressed optimism that if this treatment is approved by the FDA, it could lead to an exponential increase in the company’s sales. After the announcement was made, JP Morgan analysts predicted that the company’s sales could peak at $900 million.
Other analysts have even higher projections, if the treatment is approved. For instance, SVP Leerink projects that sales could hit $1.2 billion, while Raymond James expects that global sales of this treatment to hit $3 billion.
This optimism is evident in the strong increase in sales that the company demonstrated in Tuesday’s trading session. From the chart below, the stock opened with a breakout gap up that saw the stock hit highs of $36.88 before finally closing the day at $30.73. Volumes were quite high too and hit 29.12 million in the day.
About ChemoCentryx Inc
ChemoCentryx Inc is a biopharma company that develops new medicines for autoimmune and inflammatory diseases. The company also works on developing cancer treatments. Its leading treatment candidate is called Avacopan, which is in phase 3 of development. The company has its headquarters in Mountain View, California.