Shares of Aliso Viejo-based Avanir Pharmaceuticals Inc. shot up nearly 40% Monday on news that regulators cleared a clinical trial for Zenvia, its long-delayed drug candidate to treat emotional outbursts.
Avanir, which has a market value of about $100 million, said the Food and Drug Administration agreed on a single advanced clinical trial for the drug, which targets emotional outbursts in patients who have Lou Gehrig’s disease or multiple sclerosis.
The involuntary emotional disorder is marked by uncontrollable outbursts of laughter, tears or other emotions.
Avanir’s shares finished Monday up 19%.
The company, which moved to Orange County in 2006 from San Diego, has seen several costly regulatory setbacks with Zenvia.
A year ago, the FDA requested the company provide more information in order to consider approval for the drug.
Avanir got a boost in May, after another clinical study showed that Zenvia significantly lessened nerve pain in diabetics.
