- Alterity Therapeutics (ATH) has seen its stock price go bonanza, after receiving guidance from the FDA about its Multiple System Atrophy (MSA) treatment
- The drug developer's share price closed yesterday at 1.7 cents per share and hit a high of 41 cents per share today
- The ASX launched a query into the price rise, and a pause in trading, as a result
- Alterity responded, explaining the rise was mainly due to the FDA announcement and Nasdaq trading
- The U.S. regulator has given the green light for its treatment to advance to phase two trials
- The company's shares today closed up 871 per cent, at 16.5 cents each
Alterity Therapeutics' (ATH) share price has gone gang-busters, following a positive announcement concerning FDA guidance on its Multiple System Atrophy (MSA) treatment.
The announcement yesterday prompted huge amounts of trading, which followed on today, seeing the share price increase more than 2300 per cent.
Alterity's share price closed yesterday at 1.7 cents per share, and at its peak, was trading for 41 cents per share today.
The ASX intervened and issued a please-explain to the company, as well as a trading halt.
The company responded, explaining shareholder's optimism in the company can be traced to yesterday's announcement and its Nasdaq performance, where the company is also listed.
The announcement that started the share price spike was similarly good news.
Alterity revealed it had received guidance from the FDA on a development pathway for its treatment for MSA, which is a Parkinsonian disorder that has no approved treatment.
The meeting with the U.S. regulator follows last year’s successful completion of a phase one clinical trial for the company's lead compound for the treatment.
Alterity also announced yesterday it had secured FDA approval on key aspects of its phase two study design, and the non-clinical investigations required to support the study.
The company's Chief Medical Officer, David Stamler, thanked the FDA for its help.
“The FDA clearly recognises the seriousness of MSA and the need for new treatments to address this devastating Orphan disease," he said.
"With the information obtained from this meeting, we have a clear path forward for conducting our Phase 2 study in MSA," he added.
Alterity's share price closed up 871 per cent, at 16.5 cents per share.