Please ensure Javascript is enabled for purposes of website accessibility

Why BioCryst Pharmaceuticals Stock Is Jumping Today

By Keith Speights - Feb 3, 2020 at 11:46AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A regulatory filing in Japan has investors excited about the drugmaker's prospects.

What happened

Shares of BioCryst Pharmaceuticals (BCRX 1.88%) were jumping 8.1% higher as of 11:13 a.m. EST after rising as much as 12.3% earlier in the day. The nice gain came after the biotech announced that it had filed for regulatory approval in Japan of berotralstat as a prophylactic treatment of hereditary angioedema (HAE).

So what

You might wonder why a regulatory submission in Japan would qualify as a significant catalyst for any biotech stock. In BioCryst's case, it's important to consider the context.

Female scientist holding a petri dish with a dropper, test tubes, and chemical structures appearing in the foreground

Image source: Getty Images.

BioCryst's shares have been extremely volatile recently. It stock has swung up and down as investors focused on the potential for the company's early-stage drug galidesivir in treating the coronavirus strain that has spread across the world. 

But while those stock gyrations were all based on pure speculation, BioCryst's filing for approval of berotralstat in Japan is more tangible. The drugmaker recently announced positive results from a clinical study in the country evaluating berotralstat in treating HAE.

BioCryst already has a partner lined up to market berotralstat in Japan, if approved. Torii Pharmaceutical paid BioCryst $22 million up-front and will fork over another $20 million if the drug wins Japanese approval by a specified date and receives reimbursement approval above an agreed-upon level.

Now what

Submitting for approval doesn't necessarily mean that a drug will actually win approval. However, BioCryst thinks its chances for obtaining Japanese approval are pretty good. The company expects to potentially win a green light for berotralstat in Japan in the second half of this year.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

BioCryst Pharmaceuticals, Inc. Stock Quote
BioCryst Pharmaceuticals, Inc.
$14.64 (1.88%) $0.27

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/15/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.