Dara BioSciences announced Tuesday that it has named Christopher Clement to be its CEO.
Clement had been serving as the Raleigh companys president and chief operating officer. He replaces David Drutz, who has also been serving as Daras chief medical officer.
Drutz will continue to serve as chief medical officer while also becoming executive chairman of the companys board of directors.
Daras stock surged 14 percent on Monday on news that the companys drug, KRN5500, has been granted orphan drug status by the Food and Drug Administration for its treatment of multiple myeloma.
Such status expedites the regulatory review process and is granted to drugs that treat rare conditions for which there are few adequate therapies.
In February, the FDA also granted KRN5500 orphan status for its potential treatment of chemotherapy-induced peripheral neuropathy in cancer patients. Daras stock jumped 23 percent in a single day after that announcement.
KRN5500 is now in phase 2 clinical trials.
Dara raised $11.3 million in a preferred stock sale earlier this month. The company reported last month before the stock sale that it has only enough money to fund operations through the third quarter of this year.