Rocket Pharmaceuticals
stock was surging Wednesday after the biotechnology company announced it reached alignment with the Food and Drug Administration regarding its global Phase 2 trial for a treatment of Danon disease.
Rocket
(ticker: RCKT) stock soared 41% Wednesday to $21.60 and was on pace for its largest percentage increase since December 2020, according to Dow Jones Market Data. The stock also was on pace for its highest close since June.
The move came after the pharmaceutical company said Tuesday that it had reached an agreement with the FDA to support the Phase 2 trial of R-A501 for Danon disease, which is potentially fatal inherited cardiomyopathy. This disease impacts about 15,000 to 30,000 people in the U.S. and U.K., the company said.
“We believe this milestone sets us on the most efficient and rapid path to delivering this potentially transformative therapy to Danon disease patients who would otherwise progress to heart transplantation or death,” Chief Executive Gaurav Shah said in a press release.
Needham analyst Gil Blum was optimistic about what the news could mean for the stock. In a research note, Blum said that the gene therapy for Danon disease “will become a major value driver due to the size of the indication and lack of available therapy.”
Blum rates the stock as a Buy with a $53 price target.
William Blair analyst Sami Corwin rates the stock atOutperform with no price target. Corwin wrote in a research note Wednesday that “we view Rocket’s alignment with the FDA regarding its Phase II pivotal trial of RP-A501 positively and believe it is in line with management’s previous guidance and our expectations.”
Write to Angela Palumbo at [email protected]
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