(Bloomberg) – ChemoCentryx Inc. stocks rose the most since November 2019 after the drug maker received US approval for Tavneos for the treatment of a rare autoimmune disease.
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The stock rose 96% and trading volume jumped to about 144 million shares, up from 6 million shares on Thursday. It added about $ 1.31 billion to a market value that’s now around $ 2.68 billion.
Even with Friday’s rally, the stock is still down about 38% this year. ChemoCentryx slumped a record 62% in May after narrowly endorsed by an FDA advisory panel in support of the benefit-risk profile of its Avacopan drug candidate.
The company expects an approval decision for Tavneos in Europe by the end of the year following the review by the European Medicines Agency. The drug for ANCA-associated vasculitis was approved in Japan late last month.
The approval of the drug prompted Piper Sandler to upgrade ChemoCentryx from neutral to overweight, with analyst Edward Tenthoff describing the news as a “positive surprise”. Raymond James analyst Steven Seedhouse has also moved ChemoCentryx from outperformance to a strong buy, raising its price target for the stock from $ 62 to a street high of $ 107. The stock has seven buy ratings, one hold and one sell rating, and a 12-month average price target of $ 58, according to data compiled by Bloomberg.
(Updates stock movement, trading volume, chart and analyst data; adds Raymond James upgrade.)
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