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Raptor Pharmaceuticals up 26 Percent on FDA Approval

Raptor Pharmaceuticals soared 26 percent on Wednesday after the FDA granted its drug, Procysbi, orphan drug exclusivity.

Raptor Pharmaceuticals (NASDAQ: RPTP) is a biopharmaceutical company specializing in treating rare, often fatal, diseases. It’s drug, Procysbi, is indicated for the treatment of nephropathic cystinosis, a metabolic lysosomal storage disorder that afflicts 200,000 people around the world but only 500 in the United States.

The company announced that the FDA gave the drug the orphan drug designation. The designation is only for drugs that treat less than 200,000 people and offers patent protection for seven years. The FDA uses the orphan drug designation to encourage drug companies to develop treatments for less common diseases. Along with extended patent protection, the FDA is often quicker to approve drugs along with offering other incentives.

While the company was up 26 percent, some are wondering if the move is overdone. The U.S. peak sales for the drug are only projected at $60 million. This means that Raptor will have to gain approval in other markets to turn a profit.

Disclaimer: At the time of this writing, the author had no position in the above name securities.

[stock-tools exchange="NASDAQ" symbol="RPTP" image_height="230" image_width="350"]

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