Shares of Aldeyra Therapeutics Inc (NASDAQ:ALDX) rocketed Tuesday after the biotech company unveiled promising results from a Phase 3 trial for its allergic conjunctivitis treatment, which met its primary and secondary endpoints.
The trial evaluated the efficacy and safety of 0.25% and 0.5% concentrations of its flagship drug reproxalap compared to a control in 318 patients with seasonal allergic conjunctivitis.
Investors welcomed the results, sending Aldeyra shares up 34% to $9.58 in afternoon trade.
READ: Aldeyra Therapeutics shares pop on positive trial results for dry eye disease drug
The Lexington, Massachusetts company plans to meet with regulators in the second half of this year to discuss the trial results and remaining clinical requirements as it moves to potentially submit a new drug application for reproxalap to the US Food and Drug Administration.
"The ALLEVIATE results suggest the potential of topical ocular reproxalap as a novel, safe, and effective therapeutic option that could be used to complement existing therapy before resorting to corticosteroids, which can lead to serious ocular toxicity," said Dr David Clark, chief medical officer of Aldeyra.
In addition to announcing the positive Phase 3 trial results, Aldeyra also entered into a loan and security agreement with Hercules Capital that provides up to $60 million in financing.
Aldeyra's flagship drug, reproxalap treats dry eye disease, allergic conjunctivitis, noninfectious anterior uveitis, and Sjögren-Larsson Syndrome.
Contact Ellen Kelleher at ellen@proactiveinvestors.com
-- This story is updated to reflect latest share price movement --