KalVista Pharmaceuticals (KALV) reported “overwhelmingly positive” results for its hereditary angioedema study on Tuesday, and the biotech stock rocketed to a five-year high.
The company tested its drug, known as KVD900, in 53 patients with the swelling disorder. Patients were instructed to take KalVista’s drug within an hour of a swelling attack. They could also use their regular medicine as a backup, “rescue” in case Kalvista’s treatment didn’t work.
Only 15% of KVD900-treated attacks required use of the rescue medicine. That compares to 30% in the placebo group. SVB Leerink analyst Joseph Schwartz classified the results as “overwhelmingly positive.” He has an outperform rating on the biotech stock.
“In our view, these data vastly exceed the Street’s expectations for this readout, and KalVista shares could trade up substantially — as demonstrated by the roughly 140% move premarket,” he said in a report to clients.
The biotech stock soared to its highest point since January 2016. In afternoon trading on today’s stock market, KalVista shares catapulted 119.1% higher to 34.19.
Biotech Stock Rockets On Key Test
KalVista’s oral medicine also met several secondary goals.
Importantly, the median time for symptoms to resolve was 1.6 hours for KVD900-treated patients. In comparison, it took nine hours for placebo recipients to experience symptom relief. This is in line with Ruconest, an injection for hereditary angioedema.
Further, KalVista’s drug was effective for 24 hours.
SVB Leerink’s Schwartz noted standard drugs are highly effective. But KalVista’s drug wasn’t just robustly effective, it “has strong potential to become a formidable competitor, while offering more convenient administration,” he said.
He expects the biotech stock to benefit after Phase 3 testing.
“Patients will have more confidence in an investigational treatment making them less likely to reach for their rescue medicine,” he said.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
YOU MAY ALSO LIKE: