Many pharmaceutical companies have had a good time of late and have seen their stocks record significant gains as well. The latest company to enter that fray is Evoke Pharma Inc (NASDAQ:EVOK), which made a major announcement on Monday, and consequently, its shares rallied strongly.
Finally Lands Approval For Lead And Only Drug
The company has only one medicine under development, and on Monday, Evoke announced that the United States Food and Drug Administration granted approval to it. The product, known as GIMOTI, which is a nasal spray meant for treating people suffering from diabetic gastroparesis, had been rejected by the FDA more than a year ago, and hence, it is a significant development for Evoke in many ways.
Back in 2016, the product failed to meet its primary endpoint in a phase three study but recorded clinically significant benefits in as many as 51% of the patients. The approval from the FDA on Monday proved to be a massive boost for the Evoke stock, and it soared by as much as 62% as investors piled on to it on the back of the announcement. It remains to be seen if the Evoke stock can add to its gains for the rest of the week, and it is likely that it is going to be in the focus of investors.
Evoke Pharma has long been regarded as a small company for a considerable period of time, and the plunge in the CRL had relegated the company into penny stock territory. Back in November last year, Evoke had even applied for a waiver from NASDAQ with regards to its stock going below the minimum bid price of $1 and had been granted it by the exchange.
However, the approval from the FDA has changed the situation markedly for the Evoke stock as investor interest has returned strongly in the stock. On Monday, the stock jumped to $3.82 a share from $2.34, and it remains to be seen if it can continue the rally.