Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Iveric Bio Stock Is Rocketing Higher Today

By Cory Renauer – Sep 10, 2021 at 11:39AM

Key Points

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

Mixed results from Apellis Pharmaceuticals are good news for Iveric Bio's geographic atrophy program.

What happened

Iveric Bio (ISEE 1.32%) stock is blowing through the roof even though the company didn't have any news to share today. As of 11:07 a.m. EDT on Friday, shares of the clinical-stage biopharmaceutical company were up 56.8% thanks to lackluster results from a potential competitor.

So what 

Iveric Bio didn't have anything to say about Zimura, its lead candidate for the treatment of geographic atrophy secondary to age-related macular degeneration. The stock is shooting higher today in response to mixed pivotal trial results that Apellis Pharmaceuticals (APLS 1.69%) reported today

Smiling biomedical scientist.

Image source: Getty Images.

Iveric Bio already reported success for Zimura in the pivotal Gather1 trial, but we're still waiting for results from the Gather2 study. Today, Apellis Pharmaceuticals reported results for a pair of pivotal geographic atrophy studies with pegcetacoplan, and only one achieved statistical significance on its primary endpoint. This means Zumira could be the first geographic atrophy drug to earn FDA approval.

Now what

Apellis Pharmaceuticals isn't going to let mixed pivotal trial data stop it from submitting an application for pegcetacoplan later this year. With varied results from clinical trials designed to be identical, though, there's a strong chance the FDA will make a request for more data that sets the biotech back over a year.

The Gather2 trial with Zimura completed enrollment in July and the study protocol calls for 12 months of treatment and observation. If Gather2 reads out as successfully as Gather1 did, Iveric Bio could submit an application for its first new drug by the end of next year.

Cory Renauer 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.

Stocks Mentioned

IVERIC bio, Inc. Stock Quote
IVERIC bio, Inc.
ISEE
$23.06 (1.32%) $0.30
Apellis Pharmaceuticals, Inc. Stock Quote
Apellis Pharmaceuticals, Inc.
APLS
$50.63 (1.69%) $0.84

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

Related Articles

Premium Investing Services

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