Shares of BioCryst Pharmaceuticals (NASDAQ:BCRX) are trading higher on Wednesday following the company's announcement of positive news regarding its hereditary angioedema (HAE) treatment, Orladeyo. The company's stock was up by 6.2% as of 3:33 p.m. EDT, after rising by as much as 9.8% earlier in the trading session.
Back in January, oral once-daily Orladeyo was approved in Japan for prophylactic treatment of HAE. Today, BioCryst Pharma announced that the Japanese National Health Insurance System (NHI) has approved the addition of Orladeyo to its drug price list starting on April 21. Torii Pharmaceutical, a drugmaker headquartered in Japan, owns the commercial rights to Orladeyo in the country.
Torii is set to launch Orladeyo in Japan once the NHI drug price listing kicks in. Importantly, this development triggers a $15 million milestone payment from Torii to BioCryst. BioCryst is also entitled to receive royalties ranging from 20% to 40% of Orladeyo's net sales in Japan. These factors explain why investors cheered this news, especially considering Orladeyo is the only prophylactic treatment for HAE approved in Japan.
BioCryst Pharma and its shareholders have more to look forward to regarding Orladeyo. The healthcare company has already filed for approval of this treatment in the EU, and it expects an answer from regulators during the second quarter. If Orladeyo earns regulatory approval in Europe, BioCryst Pharma's shares will likely rise on the news. In short, investors should pay close attention to BioCryst over the next few weeks.