Aerie (AERI) Stock Spikes After FDA Lowers Drug Trial's Primary Endpoint

NEW YORK (TheStreet) -- Aerie (AERI) shares are up 52.45% to $20.27 in morning trading on Tuesday after the drug developer announced that the Food and Drug Administration said that the biopharmaceutical company could change the primary endpoint range for the third phase of its registration trial for Rhopressa.

The trial for the eye disease treatment now has a primary endpoint range to include patients with baseline intraocular pressures ranging between 20 mmHg and 25 mmHg.

The previous range for the trial was between 20 mmHg and 27 mmHg.

As a result of the FDA's ruling, analysts at Needham upgraded the stock to "buy" from "hold".

The company's shares rose 40% in after-hours trading yesterday following the announcement.

The FDA's ruling comes after the company failed to meet the trial's primary endpoint during the original phase 3 trial.

Aerie shares fell as much as 70% in April following the release of the original trial results.

"We are extremely pleased with the outcome of our communications with the FDA. If Rocket 2 results resemble those of Rocket 1, we believe we may have a much greater opportunity for success in meeting the clinical endpoint of non-inferiority to timolol," said CEO Vicente Anido Jr.

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