Ampio Pharmaceuticals Inc AMPE.O said its experimental eye drug significantly reduced retinal swelling in diabetic patients in a mid-stage study, sending the company's shares up as much as 25 percent.
The oral drug Optina is a low-dose version of danazol that was approved by U.S. health regulators in the 1970s to treat endometriosis, a condition where cells from the inner lining of the uterus grow in other parts of the body.
Ampio said the drug showed a dose-wise relation to a patient's Body Mass Index (BMI) and at one of the low doses, Optina reduced retinal swelling by about 20 percent regardless of BMI.
BMI is the ratio between the weight and height of a person to judge the amount of body fat percentage.
Type 2 diabetes, which is closely related to obesity, constitutes about 90 percent of all diabetes cases.
Greenwood Village, Colorado-based Ampio confirmed a meeting with the U.S. Food and Drug Administration in July to discuss testing and data requirements before applying for further clinical studies.
Ampio shares, which have lost about 25 percent of their value so far this year, were up 11 percent at $3.56 on Monday on the Nasdaq. They had touched a high of $3.99 earlier.
(Reporting by Vidya P L Nathan in Bangalore; Editing by Sriraj Kalluvila)