EDSA stock investors are enjoying today’s ride after the FDA said that Edesa Biotech Inc (NASDAQ:EDSA) could go ahead with its clinical study of a potential new treatment for dermatitis.
Big News for EDSA Stock
Toronto-based biotech company Edesa Biotech received a big boost today with regards to its tropical treatment meant for chronic allergic contact dermatitis after it was given a go-ahead for a Phase 2b trial by the United States Food and Drug Administration (FDA).
The Chief Executive Officer of Edesa Biotech, Par Nijhawan, said, “There are limited options for ACD patients and we have been pleased with the level of interest from physicians in the U.S. The company is committed to rapidly advancing our clinical plans and remains on track to initiate our clinical study for EB01.”
For any biotech company, a ‘safe to proceed’ letter from the FDA regarding a product or treatment is generally regarded as a significant development. Once the permission for a Phase 2B trial has been granted, it implies that the company’s methodology is approved and also empowers the company to march ahead with its clinical investigation into the product. According to reports, Edesa is expected to enroll the first batch of patients for clinical investigation in the upcoming quarter as soon as the lead product candidate has been manufactured by the company.
It is a significant development, and so, it was not a surprise when EDSA stock shot up by as much as 200% in the late morning session to $13.02.
The company has many more interesting plans in the pipeline, and CEO Par Nijhawan indicated that Edesa is also working on key products in the areas of gastroenterology and dermatology. Those can be highly lucrative products as well if it is eventually approved by the FDA. However, the company’s immediate future depends on the clinical study of EB01, and if this product manages to clear the hurdles, then it could prove to be a highly significant development for Edesa.
After today’s big jump, EDSA stock is up a whopping 125% so far in 2019.
Featured image: DepositPhotos © mikkolem