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Why Impel NeuroPharma Stock Is Soaring Today

By Cory Renauer – Sep 3, 2021 at 11:44AM

Key Points

  • The FDA approved Impel NeuroPharma's lead candidate, Trudhesa, for the acute treatment of migraine headaches.
  • Trudhesa isn't the only FDA-approved nasal spray for migraine headaches that contains the same active ingredient.

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The company's nasal spray got a green light from the FDA to treat migraine headaches.

What happened

Shares of Impel NeuroPharma (IMPL -0.34%) are shooting higher in response to Food and Drug Administration approval of the company's first drug. Investors excited about the company's graduation to commercial-stage status pushed the stock 22.3% higher as of 11:18 a.m. EDT on Friday.

So what 

On Friday morning, the FDA approved Trudhesa, a new nasal spray made with an old migraine drug called dihydroergotamine mesylate. This is an especially big deal for Impel NeuroPharma because previously the company didn't have any means of generating revenue.

Investor drawing a rising stock chart.

Image source: Getty Images.

Impel NeuroPharma's first drug launch, to begin in October, could be a big one. Around 19 million Americans are diagnosed with migraines, but less than one in four are on treatment.

Now what

Trudhesa is the first therapy to use Impel Neuropharma's nasal delivery system. It isn't the first nasal dihydroergotamine treatment available for millions of Americans who frequently suffer from painful migraine headaches.

Bausch Health (BHC 0.26%) markets Migranal, a nasal spray containing dihydroergotamine and caffeine for the treatment of the same migraine patients as Trudhesa. Migranal sales came in under $30 million last year, so it's hard to imagine Impel NeutoPharma's new sales team doing much better.

Trudhesa is a lower dosage delivered once per nostril while Migranal needs to be administered twice per nostril over a 15-minute period. Since Trudhesa was approved based on bioequivalence with Migranal, we don't know if Trudhesa's lower dosage provides significant benefits over the original. With so many important questions left to answer, it's probably best to watch this biotech stock from a safe distance.

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bausch Health Companies. The Motley Fool has a disclosure policy.

Stocks Mentioned

Impel NeuroPharma, Inc. Stock Quote
Impel NeuroPharma, Inc.
IMPL
$2.96 (-0.34%) $0.01
Bausch Health Companies Stock Quote
Bausch Health Companies
BHC
$7.63 (0.26%) $0.02

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