Keryx: 22% Gain May Spark More Growth After Successful Zerenex Trial
The success of a clinical trial usually increases a company’s stock price – Keryx (KERX) is no exception. With the announcement of a successful clinical trial of its new end-stage kidney medication, Zerenex, completed in Japan with the help of Japanese partners Torii Pharmaceutical and Japanese Tobacco, the stock price has jumped about 22%. Given that Keryx recently suffered a clinical trial failure of its other drug, perifosine, aimed at treating colorectal cancer, the news of this triumph may put the company back in the forefront along with other pharmaceutical companies like Valeant (VRX) and Abbott Laboratories (ABT), which have seen similar success with recent clinical trials.
The company’s Japanese partners plan to apply for drug approval in Japan, which could make the stock price increase even more. Keryx, currently conducting a U.S. Phase lll clinical trial of Zerenex, may apply for FDA approval by the end of 2012. If approved, the drug could help reduce extremely high phosphate levels, also known as hyperphosphatemia in those with end-stage renal disease. The company should complete the Phase lll clinical trial by the fourth quarter of this year.
It seems that many people at Keryx, including Ron Bentsur, the company’s Director Chief Executive Officer, had lots of faith in the outcome of these recent trials. On April 19, two days before the release of the Japanese clinical trial results, the SEC recorded Bentsur purchased 19,100 shares of Keryx worth about $25,000 on April 18. To continue reading, click here.