NEW YORK (TheStreet) -- The shares of Flamel Technologies (FLML) are rallying after two other companies, Jazz Pharmaceuticals (JAZZ - Get Report) and Concert Pharmaceuticals (CNCE - Get Report), decided not to continue development of their JZP-386 drug at this time. JZP-386 is a version of narcolepsy treatment sodium oxybate which only has to be taken one time per night. Flamel is at work on a similar product. Previous versions of sodium oxybate had to be taken twice per night.
WHAT'S NEW: Last night, Jazz and Concert Pharmaceuticals announced that the results of a Phase 1 trial of JZP-386 do not warrant carrying out further trials of the product at this time.
ANALYST REACTION: In a note to investors earlier today, JMP Securities analyst Jason Butler wrote that the news has positive implications for Flamel's sodium oxybate program. Flamel's candidate is now the most advanced product of its kind in development, according to Butler, who reiterated a $25 price target and Outperform rating on Flamel shares.
PRICE ACTION: In morning trading, Flamel surged 15% to $16.97. Meanwhile, Concert fell 2.3% to $14.42 and Jazz shares slipped 0.4% to $176.20.