Shares of Edesa Biotech Inc. shot up 140% in premarket trade after the Toronto-based company said the FDA had given it the go-ahead to start a Phase 2b trial looking at a topical treatment for chronic allergic contact dermatitis. The treatment, called EB01, is the company's lead drug candidate. "There are limited options for ACD patients and we have been pleased with the level of interest from physicians in the U.S.," said Par Nijhawan, Edesa's chief executive officer. "The company is committed to rapidly advancing our clinical plans and remains on track to initiate our clinical study for EB01." Shares of Edesa have declined 22.5% in the year to date through Wednesday, while the S&P 500 has gained 16.7%.