Shares of Aldeyra Therapeutics Inc. (ALDX) jumped nearly 53% to $6.50 in premarket trading on Tuesday, Sept. 12, after the Lexington, Mass.-based firm unveiled positive results from its Phase 2a study of ADX-102 in dry eye disease.

Dry eye disease affects approximately 20 million people in the U.S., according to the company, and leads to inflammation, discomfort and in severe cases, decreased vision. Existing therapy, typically aldehyde mediators, may contribute to ocular inflammation. By diminishing aldehyde levels, Aldeyra bills its topical ocular aldehyde trap platform as a novel approach for treating the disease.

Meanwhile, shares of Sage Therapeutics (SAGE) were down 24% to $67.25 after the Cambridge, Mass.-based company said its Phase 3 study of brexanolone in super-refractory status epilepticus did not meet its primary endpoint.

Among the other biotech movers was Intercept Pharmaceuticals Inc. (ICPT) , down 15.4% to $95.99. In a Sept. 8 letter to healthcare providers highlighting prescriber information for primary biliary cholangitis treatment Ocaliva, Intercept said that "[l]iver injury, liver decompensation, liver failure, and death have been reported in patients with moderate to severe hepatic impairment when OCALIVA was dosed more frequently than recommended in labeling for such patients."

In a note on Tuesday morning, Jefferies LLC analysts said they believe the sell off sparked by the letter "is an overreaction and believe risk/benefit of OCA remains favorable."

"We would be buyers of the stock, especially on weakness, and see the stock recovering as the Phase III trial in cirrhotic patients is initiated by YE and we get closer to the Phase III NASH results in early 2019," the analysts wrote.

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