(Reuters) - Aldeyra Therapeutics Inc said on Tuesday its drug reproxalap to treat a form of allergic reaction to the eye met the main goal in a late-stage trial, sending shares up more than 60 percent.
The study tested two doses of the drug in 318 patients with seasonal allergic conjunctivitis, an allergic reaction to substances such as pollen or spores causing eye inflammation.
Both concentrations of reproxalap exhibited an anti-inflammatory profile distinct from standard-of-care and support a different mechanism of action for the treatment of allergic conjunctivitis, the company said.
The results suggest the potential of reproxalap being used to complement existing therapy, Aldeyra Chief Medical Officer David Clark said in a statement.
Earlier this month, Cantor Fitzgerald analyst Elemer Piros had said the study only had a 30 percent probability of success, but added that a positive result could have “significant upside opportunity” for the drug.
Reproxalap, which is also being tested as a treatment for dry eye, could become a blockbuster opportunity by 2025, with $1.6 billion in U.S. sales, Piros had said.
Aldeyra plans to meet with regulatory authorities in the second half of 2019 to discuss potential submission of its marketing application for the drug.
Shares of the company were up about 67 percent at $11.90 before the bell.
Reporting by Aakash Jagadeesh Babu in Bengaluru; Editing by Shinjini Ganguli