Prosensa Holding NV said it would consider further developing its muscle disorder drug, which failed a key trial, after additional data showed the treatment could slow the progression of the disease, sending its shares up 50 percent.
The news comes just days after Prosensa's partner, GlaxoSmithKline Plc, returned the rights to the drug, drisapersen, after it failed the late-stage study by GSK in September last year.
Prosensa Chief Executive Hans Schikan said the results suggested that treating patients earlier and longer with the drug delayed the progression of the disease.
Drisapersen was being developed to treat Duchenne muscular dystrophy, a rare muscle-wasting genetic disease affecting boys.
"These data encourage us to engage patient groups, clinical experts and regulators to explore a path forward for drisapersen, which includes the possibility of re-dosing," Schikan said in a statement.
Prosensa shares fell 12 percent on January 13, when GSK terminated a 2009 collaboration deal with the company for the drug.
The stock was up 27 percent at $7.03 on Thursday afternoon on the Nasdaq.
(Reporting by Vrinda Manocha in Bangalore; Editing by Kirti Pandey)