Horizon Pharma (NASDAQ:HZNP) is having an incredible day in the market today, and for a very good reason. The company has received a Notice of Compliance for RAVICTI in Canada. Today, we'll talk about the details of the NOC, how the market is reacting to the news, and what we can expect to see from HZNP moving forward. So, let's get right to it...
HZNP Receives Notice Of Compiance From Health Canada
Health Canada is essentially the Food and Drug Administration in Canada, and they've sent very good news to Horizon Pharma. It was announced early this morning that HZNP has received a Notice of Compliance from Health Canada for RAVICTI Oral Liquid for use as an adjunctive therapy for chronic management of adult and pediatric patients two years or older with Urea Cycle Disorders. According to recent data, UCDs currently impact 200 people in Canada. These patients often experience episodes where they get symptoms from the ammonia in their blood being excessively high, leading to crisis.
In a statement, HZNP chairman, president and CEO, Timothy P. Walbert had the following to say...
“The approval of Ravicti in Canada is a significant milestone for Horizon Pharma as it continues to expand the accessibility of important medicines to patients with unmet treatment needs... I commend Health Canada for acknowledging the importance of this innovative medicine and the company intends to rapidly pursue funding and reimbursement. Horizon will soon be filing clinical and cost effectiveness submissions to the respective health technology assessment agencies in Canada and engaging with public and private drug plans to ensure that patients with Urea Cycle Disorders who may benefit from treatment are able to access RAVICTI as quickly as possible.”
How The Market Reacted To The News
As investors, we have learned that the news moves the market. Any time there is positive news released with regard to a publicly traded company, we can expect to see gains in the stock. Adversely, negative news will cause declines. Given the fact that HZNP has received approval for an important treatment in Canada, the positive news is leading to an overwhelmingly positive reaction in the market. Currently (11:17), the stock is trading at $14.96 per share after a gain of $0.94 per share or 6.70% thus far today.
What We Can Expect To See Moving Forward
I've been following HZNP for quite some time now, and I have to say that I've been a bull on the stock the whole way through. This has not changed in the least. In fact, the news today makes me even more excited to see the growth that Horizon Pharma is likely to accomplish moving forward. The reality here is that Canada approving RAVICTI further validates the fact that this is an effective treatment for Urea Cycle Disorders and will likely lead to approval from other regulatory agencies around the world relatively soon. When it comes to HZNP, we're talking about a company that has an incredible pipeline, great products that have already been approved, and an amazing management team. Perhaps more importantly, HZNP has a solid plan for growth moving forward. All in all, I'm expecting to see incredible gains out of the stock.