Why Durata Therapeutics Inc. Shares Marched Higher

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 Durata Therapeutics (NASDAQ: DRTX  ) , a biopharmaceutical company focused on developing therapies to treat infectious diseases and illnesses, jumped as much as 20% after announcing the acceptance of its experimental drug dalvance for priority review by the Food and Drug Administration.

So what: According to the press release, the FDA accepted the new drug application for Durata's dalvance for the treatment of acute bacterial skin and skin structure infections (ABSSSI) while granting it a priority review, which should speed along the review process to within a six-month time frame, as opposed to the standard 10-month review process. In two late-stage trials, Durata's dalvance was paired up against Vancomycin, and was demonstrated to be non-inferior to the current standard of treatment. Furthermore, the Vancomycin control arm received the therapy twice daily for two weeks, whereas Durata's dalvance is just two intravenous injections given one week apart.

Now what: I'm not quite certain that I'm as excited about today's priority review acceptance as shareholders in Durata are, but I can clearly see how this could be a transformative drug, if approved, considering the convenience factor associated with the therapy. With dalvance meeting its primary endpoint of non-inferiority, and the secondary endpoint supportive of the fact that dalvance could work as an alternative ABSSSI treatment, I'm certainly leaning in favor of its experimental therapy being approved. Now, all we have to do is wait and cross our fingers that the FDA concurs.

The growth opportunity you won't want to miss
Although Durata's growth potential is readily apparent, it may not be able to hold a candle to this incredible tech stock, which is growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table, and why he's so confident this company will be a huge winner in 2013 and beyond. Just click here to watch!


Read/Post Comments (2) | Recommend This Article (1)

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.

  • Report this Comment On November 28, 2013, at 11:32 AM, sicnick wrote:

    Basher!!! This drug is 95% effective, can be administered at home & shortens Hospital stays making it more cost effective overall.. This article clearly states you are negative & I'm guessing you are shorting the stock. Happy thanksgiving from all the Longs...

  • Report this Comment On January 03, 2014, at 5:33 PM, Cannondale35 wrote:

    This compound has shown the potential to augment the efforts of hospitals to shift their paradigm of treatment to the outpatient setting and save money. The caveat will be how Dalvance (if approved) is priced. Durata is in a unique position to learn from the mistakes of Optimer (Dificid) and Cubist (Daptomycin). Optimer overpriced their drug, despite showing less recurrence and Cubist continues to price themselves out of the market with increasing the price (once again). Infectious disease physicians and pharmacy will restrict Dalvance if too expensive. Hopefully the share holders will recognize the value of bringing a novel therapy to market without pricing out of the stratosphere. We shall see?

Add your comment.

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: 2745529, ~/Articles/ArticleHandler.aspx, 10/22/2014 6:33:24 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...


Advertisement