Shares of Furiex Pharmaceuticals have surged 64 percent since the Morrisville company's Japanese partner won U.S. approval for a trio of diabetes drugs Friday.
Furiex shares were trading at $34.94 a share Monday afternoon, up $13.70 a share, the biggest gain since Furiex became a standalone company in 2010. The approval of Nesina, Oseni and Kazano represents the first revenue opportunity for Furiex in the U.S. market.
The 24-employee company said Friday that the U.S. Food and Drug Administration approved three treatments for type 2 diabetes for Takeda Pharmaceutical Co. Under its agreement with Takeda, Furiex is entitled to receive a $25 million milestone payment as a result of the FDA approval as well as royalties on U.S. sales of the drugs.
Furiex is also receiving royalty payments from Takeda for the sale of two medications in Japan.
Furiex was spun out of Wilmington-based Pharmaceutical Product Development, one of the industry's largest contract research organizations, in 2010.
The company has thee other products under development for the U.S. and world markets, including an antibiotic, a drug for irritable bowel syndrome, and a treatment for premature ejaculation, which is already sold in Europe.