Avanir doubles on positive drug trial
April 18 (SmallCapInvestor.com) – Shares of Aliso Viejo, Calif.-based Avanir Pharmaceuticals (Nasdaq: AVNR) have more than doubled following news the drug Zenvia decreases the nerve pain experienced by diabetics.
A Phase III clinical trial showed that patients with diabetic neuropathic pain treated with the drug reported significantly less pain over 90 days when compared to patients given a placebo. Both groups were asked to rate their pain daily by making journal entries.
“We are extremely encouraged by the results of this trial which are consistent with Avanir's prior Phase II study in patients with diabetic neuropathic pain,” Avanir’s Senior Vice President and Chief Medical Officer Randall Kaye, MD said in a statement before the start of trading. “We look forward to meeting with the FDA to discuss the next study for Zenvia for the treatment of diabetic neuropathic pain given the robustness of the clinical results.”
In October 2006, the U.S. Food and Drug Administration triggered a sharp drop in Avanir’s stock price when it declined approval of the drug, asking instead for more data. In February 2007, Avanir was asked to hold a new clinical trial to test a modified form of Zenvia. A month later the company announced it is exiting one of its facilities to save money for trials of Zenvia.
Avanir said it currently has two Phase III Zenvia programs in what it claims are underserved areas: one in Involuntary Emotional Expression Disorder (IEED), and another in diabetic neuropathic pain. The company said it will continue to develop Zenvia as a treatment for those conditions.
At 2:01 p.m. ET shares were up $3.56, or 280.31%, to $4.83. The previous 52-week high of $14.69 was set on April. 19, 2006. The 52-week low of $1.07 was set on March 15, 2007.
