Drugs giant Shire traded up to three per cent higher yesterday morning and closed 0.95 per cent up, after news that the US Food and Drug Administration on Friday approved its new binge-eating disorder drug.
Vyvanse, which is currently approved to treat attention deficit hyperactivity disorder, generated sales of more than $1bn (£665m) in the first nine months of 2014.
Shire expects it will generate an additional $200m to $300m from marketing Vyvanse for binge-eating by 2020.
Binge-eating disorder, characterised by repeated episodes of uncontrolled eating, followed by both guilt and shame, affects roughly 2.8m people in the US, according to Shire.
In clinical studies, patients taking Vyvanse were shown to have significantly fewer binge days per week than those taking a placebo.
At the time of entry to the trial, the average number of binge days per week was 4.79. By week 12, average binge days per week had fallen to less than one.
Patients taking a placebo, by comparison, saw a reduction of little more than two days a week.
“This new indication for Vyvanse is a critical milestone in the treatment of this condition and reflects our ongoing commitment to address the needs of patients,” said Shire global head of research and development Philip Vickers.
Shire shares closed up nearly one per cent at 4,900p a share in London.