What happened
Shares of BioVie (BIVI -3.26%) were soaring 23.6% higher as of 11:19 a.m. ET on Thursday. The big jump appears to be the result of a delayed positive reaction by investors after the drugmaker reported results earlier this week from a phase 2 study evaluating experimental therapy NE3107.
On Tuesday, BioVie's share price tumbled after the company's Monday evening announcement of results from its phase 2 study of NE3107 in treating Alzheimer's disease and Parkinson's disease. Then, on Wednesday, BioVie announced additional findings from the Alzheimer's portion of the trial. The company also issued a letter to shareholders on Wednesday providing some context for its clinical results.
So what
The more BioVie explained its results for NE3107, the more investors liked what they were hearing. That's not unusual. Of course, sometimes biotech stocks fall as investors learn more about data that seems positive at first glance.
BioVie thinks that NE3107 has peak annual sales potential of more than $10 billion in treating Alzheimer's disease. It believes there's another $3 billion-plus opportunity for the drug in the Parkinson's disease indication.
But there's a long way to go. And there are plenty of obstacles along BioVie's road to success with NE3107.
Now what
BioVie plans to present full details from its latest results at the 2023 International Conference on Alzheimer's and Parkinson's Diseases scheduled for March 28 through April 1, 2023. The company expects to complete enrollment in its phase 3 study of NE3107 in treating Alzheimer's disease in the next few months and report topline results before the end of the third quarter next year.
BioVie also intends to talk with the Food and Drug Administration about launching a phase 3 study targeting Parkinson's disease in 2023.
