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

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »