Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Why Furiex Shares Skyrocketed

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of drug developer Furiex Pharmaceuticals (UNKNOWN: FURX.DX  ) soared a whopping 49% today after its new diabetes treatment alogliptin, which it is licensing to Takeda Pharmaceuticals, received U.S. regulatory approval.

So what: As a result of the approval, Furiex will now receive a $25 million milestone payment from Takeda, as well as juicy royalties based on future U.S. sales. The cash-strapped Furiex has been struggling of late to fund an ongoing phase 3 trial for its chronic diarrhea treatment MuDelta, so the news is particularly huge for the company.

Now what: Don't let today's massive surge prevent you from looking into Furiex. "Receiving regulatory approvals for NESINA, OSENI and KAZANO in the U.S. marks an important milestone for Furiex," said Furiex Chairman Fred Eshelman. "These approvals should enable Takeda to build on the success of NESINA in Japan and leverage its more than 20 years of clinical and patient experience in the type 2 diabetes therapeutic area."

So while it's not usually a good idea to buy into such a big rally, Furiex's still-smallish size, limited analyst coverage, and potent pipeline suggest that the stock has plenty of room to run over the long term.

Interested in more info on Furiex? Add it to your watchlist.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2219265, ~/Articles/ArticleHandler.aspx, 5/22/2015 10:46:17 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!