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Dermira Inc. (DERM) - Get Journey Medical Corp. Report shares more than doubled Monday after the group said its new eczema treatment passed a key study in adult patients with moderate-to-severe atopic dermatitis.

Dermira, which acquired the development rights to lebrikizumab, from which the treatment is based, from Swiss pharma giant Roche in 2016, said all three doses of lebrikzumab met the primary endpoint with statistical significant in the phase II study. Dermira could use the results to launch a sustained challenger into the global market for atopic dermatitis treatments, which analysts estimate could hit $7.66 billion by 2021. Dermira said a phase III study is planned for later this year.

"These data are compelling and further demonstrate clinically that IL-13 is a key mediator in atopic dermatitis," said Dr. Emma Guttman-Yassky, the study's lead. "I have many patients for whom current therapies do not adequately address their needs. These data show that lebrikizumab may offer a targeted, effective and well-tolerated therapeutic approach."

Demira shares jumped more than 109% higher Monday to change hands at $14.33 each, a move that would value the Menlo Park, California-based drug developer at around $600 million.

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