Coralville-based KemPharm's shares are ending the week on a strong note following a big price spike on Wednesday.
The company's chief focus is on developing painkillers that, unlike conventional opiod painkillers, are non-addictive. The FDA accepted an Investigational New Drug Application from KemPharm for KP511, an abuse-deterrent extended release opioid painkiller, at the end of last month.
President Obama announced government plans to spend some $1 billion to fight the opioid addiction crisis on March 29 at the National Rx Drug Abuse and Heroid Summit in Atlanta.
Forbes.com reported that KemPharm was one of Wednesday's biggest gainers on heavy trading approximately four times its usual volume, but couldn't point to an obvious trigger for the price spike. Shares were up about 15 percent on Wednesday, amassing a 25 percent rise over a five-day period, adding interest to a clinical-stage pharmaceutical company without a product in the market.
After closing Wednesday at $18.68, shares of KemPharm, which has been on the market about one year, were trading just over $18 at mid-morning today. The company's stock reached a high of $23.63 last fall.