Shares of BioMimetic Therapeutics BMTI.O jumped 36 percent on Tuesday, a day after the company reported positive data from a small Canadian trial testing its graft in patients who undergo surgery for a common type of shoulder injury.
"Although a small pilot study, the data are positive and suggest that the application of rhPDGF-BB in rotator cuff repair merits further studies, and could attract interest from potential partners," Collins Stewart analyst Tao Levy wrote in a note to clients.
The biotechnology company's graft consists human Platelet-Derived Growth Factor-BB (rhPDGF-BB), which stimulates the wound healing system in the body.
After the market close on Monday, BioMimetic reported results from the 30-patient trial testing its Augment Rotator Cuff for repairing large rotator cuff tears.
Rotator cuff tears are among the most common shoulder injuries, and rotator cuff repair is one of the most commonly performed orthopedic soft tissue procedures in the United States.
"While the study was not powered to show any statistical differences, we find the improvement over the control arm as a positive sign," Levy said.
In January, the U.S. Food and Drug Administration declined to approve BioMimetic's augment bone graft device and sought more data before the green signal.
BioMimetic shares, which have fallen 13 percent since FDA's January move, were up 19 percent at $2.44 in morning trade on Tuesday on the Nasdaq. The stock, which touched a high of $2.79, was the biggest percentage gainer on the exchange.
About 2.5 million shares changed hands by 1030 ET, more than 22 times their normal volume.
(Reporting by Anand Basu in Bangalore; Editing by Gopakumar Warrier)