Bristol Myers Arthritis Drug Gets FDA Nod

Bristol-Myers Squibb (BMY Quote) says it has won Food and Drug Administration approval for a new drug for rheumatoid arthritis.

The New York-based pharmaceutical giant announced the news Friday evening. It will market the drug, abatacept, under the name Orencia.

Bristol-Myers Squibb says the intravenously administered drug has proven effective in treating test patients with moderate to severe forms of the disease who did not respond to so-called disease modifying anti-rheumatic drugs.

Rheumatoid arthritis is a chronic autoimmune disease characterized by inflammation in the lining of joints. It causes chronic pain and limits joint motion. Some 2 million people in the U.S. suffer from it.

Bristol-Myers Squibb's shares finished Friday's session at $22.94 but rose $2.06, or 9.0%, to $25.00 in extended trading after the closing bell.