ChemoCentryx tops since 2019 on approval of autoimmune drug

(Bloomberg) — Shares of ChemoCentryx Inc. are up. The most since November 2019 after a drug developer won US approval for Tavneos as a treatment for a rare autoimmune disorder.

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The stock jumped 96 percent, with trading volume jumping to about 144 million shares, up from 6 million shares on Thursday. It has added about $1.31 billion to a market value that is now around $2.68 billion.

Even with Friday’s rally, the stock is still down about 38% this year. ChemoCentryx tumbled a record 62% in May after receiving narrow support from an FDA advisory panel to back its risk-benefit profile for its drug candidate Avacoban.

The company expects a regulatory decision on Tavneos in Europe by the end of the year following a review by the European Medicines Agency. The drug for ANCA-related vasculitis was approved in Japan late last month.

The drug’s approval prompted Piper Sandler to upgrade ChemoCentryx to overweight from neutral, with analyst Edward Tinthoff calling the news a “positive surprise.” Raymond James analyst Stephen Sidhouse also raised ChemoCentryx to a solid buy out of the way and raised the stock’s target price to a street high of $107 from $62. The stock has seven buy ratings, one hold and one sell, and a 12-month average price target of $58, according to data compiled by Bloomberg.

(Updates stock moves, volume, chart and analyst data; adds Raymond James upgrade.)

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