Aerie Pharmaceuticals Inc (NASDAQ: AERI) is making a run for the top in the market this morning, and for good reason. The company announced an approval by the FDA, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The FDA approval;
- what we’re seeing from AERI stock as a result; and
- what we’ll be watching for ahead.
AERI Announces FDA Approval
As mentioned above Aerie Pharmaceuticals is having a strong day in the market today after announcing an FDA approval. The announcement came via press release early this morning.
In the release, the company said that the FDA has approved Rocklatan (netarsudil and latanoprost opthalmic solution). The treatment has been approved for the indication of reduction in elevated intraocular pressure in patients with open-angle glaucoma or ocular hypertension.
In the release, AERI reminded investors that Rocklatan is a once-daily eye drop that is a fixed combination of latanoprost. Currently, latanoprost is the most widely-prescribed prostaglandin analog.
The treatment also includes netarsudil, a first-in-class Rho kinase inhibitor that was sepcifically designed to target the trabecular meshwork.
As a result of the approval, the company plans on launching Rocklatan in the United States in the second quarter of 2019. In a statement, Vicente Anido, Jr., Ph.D., Chairman and CEO at AERI, had the following to offer:
We are in the unique position of receiving FDA approval on a second glaucoma treatment less than a year from the U.S. launch of Rhopressa®. Together, Rocklatan™ and Rhopressa® give us a broad therapeutic franchise, based on our ROCK inhibitor netarsudil, that addresses many of the needs of clinicians and patients in a wide variety of treatment settings. Our existing salesforce, which has been calling on U.S. eye-care professionals since last May, is very well positioned to introduce Rocklatan™ to these doctors and help them understand the clinical utility of both products in the care of their patients with glaucoma. We have also been working diligently on securing favorable reimbursement for our products, with Rhopressa® now enjoying broad commercial and Medicare Part D coverage, and Rocklatan™ already under review by major payers.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to Aerie Pharmacuticals, the news proved to be positive.
After all, with the FDA approval, the company may now commercialize yet another treatment in the United States, opening the door to a potentially strong revenue opportunity.
So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:03), AERI is trading at $47.81 per share after a gain of $1.99 per share or 4.34% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AERI. In particular, we’re interested in following the commercialization of Rocklatan and the continued growth of sales in Rhopressa. Nonetheless, we’ll keep an eye on the story and bring the news to you as it breaks!
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