NeuroDerm Early Data In Parkinson Causes Big Surge In Share Price

Shares of NeuroDerm (NDRM) surged as much as 100% during the trading session on December 30, 2014 after the company announced positive results from an early stage trial treating Parkinson's Disease. Parkinson's Disease is a mental disorder in which patients shake and lose their ability to control movement of the body. The drug used in this early stage trial, ND0612H, is two formulated liquid products that are subcutaneously administered -- given to patients with injections just under the skin --  to treat Parkinson's Disease. 

The huge surge in share price is probably due to the fact that the drug NDO612H was shown to be able to dramatically increase plasma levels in the body. Patients with Parkinson's Disease suffer because their bodies are not able to produce the proper amounts of dopamine in the brain. Levadopa is given to these patients to help but requires continuous treatment so that the drug continues to work in the body. Therefore typically major surgery is required to insert a tube in the small intestine to keep circulating the proper levels of Levadopa. 

With ND0612H patients can just take this drug to accomplish even greater Levadopa levels without the need to do any surgery at all. This is a huge plus in the advancement for these patients because avoiding surgery in any situation is a huge plus. More testing will be needed to confirm these findings but NeuroDerm believes it can improve these patients' lives without the need for surgery. Since yesterday's surge the company has given up some of its gains, losing about 22% in share price, tumbling to close the day at $14.04 per share. We believe that the company, even at the current market cap of only $238.62 million, is still a good buy. 

Disclosure: No position in any stocks mentioned.

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