Shares of many large pharmaceutical companies traded lower on Monday, very much casualties of the market in general. But one small-cap pharmaceutical located north of the border has been making good noises lately. Shares of Canada-based, Axcan Pharma (NASDAQ:AXCA) closed at $19.25 on Monday, up more than 26% since last Thursday's close. The surge in Axcan's price has been driven by record revenues as well as the submission of a New Drug Application (NDA) to the FDA.

For its Q3, the drugmaker reported a 38.5% increase in earnings per share (EPS) on a 20.3% increase in revenues versus its year-ago quarter. The company also upped its full-year revenue guidance to reflect a 15%-17% increase over its FY 2006 results. The company, which makes pharmaceutical products for the treatment of gastrointestinal disorders, attributed the strong improvements to better-than-expected results from three of its top sellers, as well as lower-than-expected selling and administrative expenses.

In August, the company submitted a NDA for Ultrase, a potential treatment for a pancreatic disorder. The drug has received fast-track designation from the FDA, and Axcan is hoping that the drug will allow it to be one of the first companies to have approved pancreatic enzyme products in the U.S. market.

This stock has soared more than 42% over the past 52 weeks, and if its Q3 results are an indication of what is to come, Axcan shares may contain more upside. Axcan is a top-25 holding of the Dreman Contrarian Small Cap Value Fund (FUND:DRSVX) and has two other drugs in phase 3 trials, adding diversity to the company's pipeline and providing potential for a future revenue boost.

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Fool contributor Billy Fisher does not own shares of any of the companies mentioned. The Fool has a disclosure policy.