Shares Of Aerie Pharmaceuticals Are Up After Reporting Updated News From The FDA

Shares of Aerie Pharmaceuticals (AERI) are up 42% in after-hours trade after the company reported that the FDA would allow the company to change the clinical endpoints of the Rocket 2 and Rocket 3 trials. This is important because previously Aeri reported disappointing results with its eye drop drug Rhopressa in glaucoma patients compared to placebo. 

At that time (late April) Aerie lost 70% of its value in one day because Rocket 1 didn't meet the primary endpoint of the clinical trial. The boost today is the fact that the FDA is now allowing Rocket 2 to change the primary endpoint around close to the results of Rocket 1. This means that if the Rocket 2 trial performs the same as the Rocket 1 trial then Rhopressa will meet the primary endpoint in glaucoma patients. 

This is good news for those shareholders who suffered great losses on initial reported failure of the Rocket 1 trial. Now investors have a chance to capitalize on additional catalysts. Be warned though that it is still quite risky because the Rocket 2 trial must come out similar to Rocket 1 results, otherwise there could be another potential selloff occurring once again. All now is dependent on whether or not Rhopressa performs better than its placebo counterpart Timolol.