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Why Paratek Pharmaceuticals Crushed the Market Today

By Eric Volkman - Jun 1, 2021 at 6:36PM

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The company gets off to a roaring start in June with an important FDA nod.

What happened

Shares of Paratek Pharmaceuticals (PRTK 8.98%) flew nearly 20% higher on Tuesday, on an otherwise forgettable day for the stock market. There was little mystery why -- the company won another approval for its next-generation antibiotic Nuzyra.

So what

Paratek announced that the U.S. Food and Drug Administration (FDA) approved its supplemental New Drug Application (NDA) for the oral-only formulation of Nuzyra to treat adults suffering from community-acquired bacterial pneumonia (CABP), a lung disease.

A researcher studying a sample in a petri dish.

Image source: Getty Images.

Previously, the FDA had approved Nuzyra in 2018 as a once-per-day oral and intravenous treatment for CABP, in addition to acute bacterial skin skin and skin structure infections (ABSSI).

The regulator's new approval means that the drug can be far more easily administered, and therefore more quickly deployed to patients.

In its press release trumpeting the latest green light for its drug, Paratek quoted its chief commercial officer Adam Woodrow as saying "The approval of an oral-only dose regimen for Nuzyra in pneumonia represents a significant opportunity to offer clinicians the ability to treat patients in either the outpatient or primary care setting."

"Treating in this way potentially reduces or eliminates hospitalizations and the associated risk and costs from a hospital stay," Woodrow added.

Now what

It's almost always good news, both for the biotech that developed it and the patients that will be treated for its target affliction, when a much easier treatment regime of a drug is approved. Nuzyra should see a commensurate rise in sales following the FDA's latest nod.

Eric Volkman 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.

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