Small-cap drug company Pain Therapeutics, Inc. (PTIE) shed 53% to $1.35 on Thursday, Oct. 4, after the company said it was filing an "administrative appeal" with the Federal Drug Administration after the agency rejected a drug the company was developing.

In August, the FDA rejected Pain Therapeutics' Remoxy drug, an oxycodone designed to discourage most methods of tampering linked to opioid abuse, because the benefits of the drug weren't great enough to justify the risks. The Anesthetic and Analgesic Drug Products Advisory Committee and Drug Safety and Risk Management Advisory Committee, part of the FDA, voted 14 to 3 against the drug.

Pain Therapeutics said on an investor call Thursday that it would file data it has on Remoxy "to see if there is anything there that would change their {FDA} opinion of Remoxy."

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Unrelated to the dispute with the FDA, the $24.6 million market cap Pain Therapeutics said earlier Thursday it received a $3.5 million research grant from the National Institutes of Health to push along what is now a phase two Alzheimer's Disease treatment, which uses the company's Alzheimer's drug candidate PTI-125. "We are once again grateful to the NIH for its support of our clinical program around PTI-125," Pain Therapeutics President and CEO Remi Barbier said in a press release.

Shares tumbled Thursday after a remarkable jump of 202% in the stock price Wednesday, Oct. 3.

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