The FDA approves ChemoCentryx's drug for rare autoimmune diseases

ChemoCentryx Inc announced Friday that the U.S. Health Agency approved its lead drug to treat a rare and fatal autoimmune condition.

The FDA approves ChemoCentryx's drug for rare autoimmune diseases

This sent the shares of the biopharmaceutical firm's stock up more than 70%.

Chief Executive Thomas Schall stated that the drug avacopan will be made available under the brand Tavneos within the next few weeks. It will retail at a wholesale price between $150,000 to $200,000 per patient per annum.

Avacopan can be taken orally to treat antineutrophil cytoplasmic antibodies (ANCA)-associated vasculitides. AAV is a group of conditions that causes destruction and inflammation of small blood vessels, affecting various organs, especially the kidney.

This drug blocks the activity of the protein C5a receptor which is responsible for many inflammatory diseases.

Current treatments include immunosuppressants like Biogen Inc's Rituxan and Roche Holding AG’s Rituxan. These drugs are combined with steroids that can have severe side effects.

According to the company, the disease affects approximately 40,000 Americans and there are about 4,000 new cases every year.

Analyst Dae Gon Ha, Stifel, estimates that Avacopan will generate $1.3 billion in sales by 2035.

In May, the U.S. Food and Drug Administration received mixed reviews of the drug. The committee voted equally on whether the drug's efficacy data was in support of approval.

The company provided additional data to avacopan in July following the meeting.

Vifor Pharma is based in Switzerland and the company has an exclusive licensing agreement that gives it commercialization rights in the United States. Vifor has rights around the rest of the globe.

The Japanese government approved the drug last month, and the European regulator could approve it by the end this year.

Avacopan is being tested for various conditions by the company, including a skin condition.

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