Ionis Pharmaceuticals on Tuesday said Olezarsen, an experimental drug in late-stage patient trials, succeeded in reducing abnormally high levels of body fat in patients with a rare genetic disorder. Ionis stock broke out on the news.
The biotech company said Olezarsen reduced high levels of triglyceride in patients with familial chylomicronemia syndrome, or FCS, a metabolic disorder.
In addition, the company said it plans to submit an application to the U.S. Food and Drug Administration early next year in preparation for a potential commercial launch.
Can Ionis Get 2024 FDA Approval?
"Approval in FCS is expected, but the stock is trading up on positive read across to the larger severe hypertriglyceridemia opportunity," Leerink Partners Research analyst Mani Foroohar said in a note to clients. Hypertriglyceridemia refers to elevated triglyceride levels, a common disorder caused by uncontrolled diabetes, obesity and sedentary habits, according to Medscape.
Familial chylomicronemia prevents the body from breaking down fats. Further, abnormally high blood levels of body fat can lead to inflammation of the pancreas.
Also, severe hypertriglyceridemia stands as another disorder tied to high levels of triglyceride.
At William Blair, analyst Myles Minter said in a report: "Olezarsen could represent the first FDA-approved therapy for FCS patients. Given Olezarsen maintains FDA fast track designation and there is no approved therapy for FCS patients, we believe there could be a possibility for priority review here. Olezarsen could be approved/marketed by year-end 2024."
Ionis Stock Jumps Into Buy Zone
On the stock market today, Ionis stock jumped 8.5% to close at 46.28, and surged past an entry point of 43.88. Meanwhile, Tuesday's rally put IONS stock just above a 5% buy zone.
Further, Ionis stock has climbed 22% in 2023 with Tuesday's gain.
According to IBD Stock Check-up, IONS stock holds a relative strength rating of 82 out of a best possible 99.
Ionis garners research and development revenue from Biogen, AstraZeneca and Roche. Also, much of Ionis' revenue comes from Spinraza, a spinal muscular atrophy treatment in partnership with Biogen.
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