NEW YORK (TheStreet) -- Shares of Prana Biotechnology  (PRAN) soared 26.17% to $2.70 in morning trading Friday after the company announced the FDA granted Orphan Drug designation to PBT2 to treat Huntington Disease, a neurodegenerative genetic disease that affects muscle coordination.

Prana said it would now apply for Orphan Drug designation in Europe and other areas. The designation "entitles Prana to seven years of market exclusivity for the use of PBT2 in the treatment of Huntington disease; protocol assistance by the FDA to optimize drug development in the preparation of a dossier that will meet regulatory requirements; and reduced fees associated with applying for market approval," the company said.

Furthermore, Prana is compiling its Post Phase 2 Trial dossier to submit to the FDA in order to start conversations on the next steps for developing PBT2.

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More than 7.3 million shares had changed hands as of 9:44 a.m., compared to the average volume of 1,043,730.

For more on this story, read TheStreet's Adam Feuerstein's coverage here.

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