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.
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Why Reata Pharmaceuticals Stock Skyrocketed This Week