Why is the Firebrick Pharma share price blazing 28% on Wednesday?

Firebrick shares are having a strong day on Wednesday…

| More on:
Concept image of a man in a suit with his chest on fire.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Firebrick Pharma Ltd (ASX: FRE) share price has been on form on Wednesday.

At one stage today, the clinical-stage pharmaceutical developer's shares were up 28% to 32 cents.

The Firebrick share price has since given back the majority of these gains but remains up 8% to 27 cents.

What's going on with the Firebrick share price today?

Investors have been bidding the Firebrick share price higher today despite there being no news out of the company.

However, it worth noting that prior to today the company's shares were trading 67% lower than their 52-week high.

So, with many beaten down ASX shares rebounding strongly today as investor sentiment improves, it isn't overly surprising to see Firebrick having a positive session.

Investors buying today appear optimistic that the company's Nasodine nasal spray still has a bright future despite being dealt a blow by the Therapeutic Goods Administration (TGA) earlier this month.

What happened to Nasodine?

Nasodine, a nasal spray intending to treat the common cold, was previously denied approval by the TGA.

The TGA then reaffirmed its stance earlier this month when the company received written advice from the regulator indicating that the section 60 request had resulted in confirmation of the original decision.

However, the company isn't accepting this and is now seeking to overturn this decision by applying for an independent review through the Administrative Appeals Tribunal (AAT).

Firebrick's executive chairman, Dr Peter Molloy, commented:

The s60 decision was always a possibility and we will now proceed to the next step in the appeal process. We strongly believe that the existing clinical data satisfactorily establishes the efficacy of Nasodine in the treatment of the common cold and that the AAT review should lead to an earlier approval of Nasodine.

We believe that because overall cold severity was not designated as the "primary" endpoint, the TGA has discounted the results.

No timeframe has been given for when a decision on the appeal will be made.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Coles, Liontown, Lovisa, and Wildcat shares are dropping today

These ASX shares are having a difficult session. But why?

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why DroneShield, Healius, Newmont, and Paragon Care shares are pushing higher

These ASX shares are having a strong session on Tuesday. But why?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Why are ASX lithium shares like Pilbara Minerals crashing on Tuesday?

Lithium stocks are getting another whack today.

Read more »

two colleagues high five each other as they sit side by side at a long desk in front of their laptop computers in an office environment.
Mergers & Acquisitions

Guess which ASX small cap stock is rocketing 27% on 'transformative' merger

Investors are liking the look of this merger plan.

Read more »

a woman wearing red blows a big bubble with bubblegum from her mouth.

Is the surging Nvidia share price causing a stock market bubble?

Is one high-flyer a sign of investors getting too excited?

Read more »

Miner looking at a tablet.
Share Gainers

Guess which ASX lithium stock just surged 94% on a deal with Mineral Resources

Investors are sending the ASX lithium stock rocketing following a joint venture agreement with Mineral Resources.

Read more »

a young woman props her hand under the face as she pokes her head out from under a luxurious doona in a bedroom decorated with flowers and a stylish lamp.
Share Market News

Why is the Lovisa share price sinking today?

Is today's decline bad news or good news?

Read more »

Miner and company person analysing results of a mining company.
Materials Shares

Up 2,150% in a year, why is the Wildcat Resources share price crashing today?

Investors appear displeased with Wildcat's latest update on the Tabba Tabba project.

Read more »