NEW YORK, NY / ACCESSWIRE / November 29, 2018 / Shares of Alliqua BioMedical more than doubled on Wednesday on news of a cannabis relatedspin off. Shares of Catalyst Pharmaceuticals also saw big gains on an FDA approval of its rare autoimmune drug, Firdapse.
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Alliqua BioMedical, Inc.
Catalyst Pharmaceuticals, Inc.
Alliqua BioMedical, Inc. shares closed up 63.19% on Wednesday on skyrocket trading volume compared to usual. The stock traded a little over 39 million shares compared to an average trading volume of just about 13,000 shares. The stock also jumped to a new 52-week high of $5.24 after the company announced it would spin off its AquaMed Technologies subsidiary and merge it with the Israeli cannabinoid-based pharma therapy company TO Pharmaceuticals LLC. Seth Yakatan, CEO of TOP, commented, “We are excited to combine TOP’s technology and research with the unique capabilities of AquaMed’s hydrogel technology, to form a truly global pharmaceutical company. We are excited and confident that the anticipated development of the combined business should generate significant shareholder value.” Both companies' boards have approved the transaction and when it closes, AquaMed will be renamed TO Pharma and will be headquartered in Langhorne, Pennsylvania.
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Catalyst Pharmaceuticals, Inc. shares closed up 7.38% on about 6.8 million shares traded yesterday. Wall Street was celebrating the news that the FDA has approved the company's drug Firdapse, to treat a rare autoimmune disease called Lambert-Eaton Myasthenic Syndrome (LEMS). It is the first treatment to be approved for the condition where the immune system attacks connections between nerves and muscles causing signal disruptions between the two. "There are drugs that are used off label to treat LEMS symptoms here in the U.S. with varying degrees of efficacy and tolerability, but with respect to approved drugs, it is the first approval and there aren't any competing drugs in development for LEMS either," remarked Oppenheimer analyst Leland Gershell. It was on Tuesday that shares were briefly halted as the company said a contractor working on a web page allowed a screen to be viewed that implied it had received the FDA response.
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