Anavex Life Sciences Corp.’s stock surged 7.1% in premarket trade Friday, after the biopharmaceutical company said its Alzheimer treatment was granted orphan drug designation by the Food and Drug Administration. Orphan drug designation provides sponsors for treatments of rare diseases with development and commercial incentives. Anavex’s drug Anavex 3-71 is a treatment for Frontotemporal dementia (FTD), a rare syndrome associated with the shrinking of the frontal and temporal anterior lobes of the brain, which causes a decline in language and changes in social behavior. There is currently no treatment that has slowed FTD progression. Anavex’s stock has lost 4.5% year to date through Thursday, while the S&P 500 has slipped 0.1%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.