Dara BioSciences stock rose 23 percent Tuesday after the Raleigh company announced that its cancer treatment had received orphan drug designation from the Food and Drug Administration.
Such status is granted to drugs that treat rare conditions for which there are few adequate therapies.
Dara’s drug, known as KRN5500, is for treatment of chemotherapy-induced peripheral neuropathy in cancer patients.
Dara also announced Tuesday that it has regained compliance with the Nasdaq stock exchange. The company had been in danger of being delisted after its stock fell below $1.
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The company completed a reverse stock split to boost its stock price. Dara’s stock closed Wednesday at $2.99, down 10 percent. The stock is up 18 percent this week.
Dara has two products on the market: Soltamox, an oral liquid formulation used in the treatment and prevention of breast cancer, and Bionect, a topical treatment for skin irritation and burns caused by radiation. Dara also has exclusive U.S. commercial rights to market and sell Gelclair for the treatment of oral mucositis, or swelling and bleeding of the mouth and gums.
Staff writer David Bracken