Nov 16 (Reuters) - Shares of Nexvet Biopharma Plc rose as much as 33 percent after the animal-health company’s drug for canine osteoarthritis showed promise in a study.
Dogs enrolled in the study experienced relief from pain at four weeks when compared with placebo, the company said, adding that the results would form the basis for a regulatory application with the U.S. Food and Drug Administration.
Analysts said the results came in as a pleasant surprise, especially after interim results in March indicated the possible expansion of the size of the trial.
Canine pain treatment, with a market size of about $400-600 million, is a huge opportunity for Nexvet, Piper Jaffrey & Co analysts wrote in a note.
The drug, NV-01, could generate revenue of about $35 million in 2020 and $70 million in 2025, they said.
Nexvet is also running an additional trial with 150 dogs, with different dosing regimens. Results from the trial are expected in December.
Nexvet shares were trading up 7.37 percent at $5.24 on the Nasdaq on Monday. (Reporting by Amrutha Penumudi in Bengaluru; Editing by Anil D‘Silva)