Shares of ChemoCentryx (NASDAQ:CCXI) soared 96% on Friday after the biopharmaceutical company received Food and Drug Administration approval for its treatment for a rare autoimmune disease.
ChemoCentryx's orally administered drug, avacopan, will be sold under the brand name Tavneos. It's designed to help treat ANCA-associated vasculitis, a condition in which an overreaction in the immune system leads to inflammation and destruction of small blood vessels that can result in fatal organ failure.
"Today is a momentous day in the history of ChemoCentryx; the culmination of decades of effort aimed at offering new hope to patients with this and other debilitating and deadly diseases," CEO Thomas Schall said in a press release.
Patients and investors alike cheered the news. "There is a significant unmet need in the treatment of ANCA-associated vasculitis, with current therapies often leading to serious, even fatal, side effects and a diminished quality of life," the Vasculitis Foundation's executive director, Joyce Kullman, said. "We believe new therapies like Tavneos may offer a brighter future for these patients."
ChemoCentryx owns the commercial rights to Tavneos in the U.S., where roughly 9,500 people are expected to be diagnosed with severe forms of ANCA-associated vasculitis. The drug will sell for a wholesale price of as much as $200,000 annually.
Analysts, in turn, estimate that ChemoCentryx could generate revenue of $1.3 billion from sales of Tavneos by 2035. A windfall of that magnitude could be huge for the company, which has recorded only $21.2 million in revenue over the past year.