NEW YORK (TheStreet) -- Shares of Relypsa (RLYP) are soaring by 6.78% to $20.95 on heavy volume in early afternoon trading on Tuesday, as the biopharmaceutical company reported encouraging Phase 1 results from its Veltassa drug to drug interaction study yesterday.

Twelve Phase 1 studies evaluated potential drug to drug interactions with its Veltassa drug, which is FDA approved for the treatment of hyperkalemia. The condition is caused by higher than normal levels of potassium in the blood.

"The results from these studies are encouraging as, of the 12 drugs that had previously shown in vitro binding to Veltassa, nine showed no clinically meaningful reduction in absorption when co-administered with Veltassa in people," Chief Medical Officer Lance Berman, M.D., said in a statement on Monday.

Relypsa said three drugs showed reduced absorption when they were co-administered with Veltassa, but when these drugs were separated by three hours, no reduction in absorption was observed.

"We look forward to discussing these data with the FDA and determining next steps," Berman said.

The Redwood City, CA-based biopharmaceutical company is focused on the development and commercialization of non-absorbed polymeric drugs to treat disorders in the areas of renal, cardiovascular and metabolic diseases.

About 3.35 million of the company's shares traded hands by this afternoon, compared to its average of 2.38 million shares per day.

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