Shares for Aimmune Therapeutics surged this week after the company won an FDA approval for its novel treatment for peanut allergies.
The treatment, which will be sold under the brand name Palforzia, was designed to reduce and potentially cure allergic reactions to peanuts in children aged 4-17. The company has listed the price of the drug at $10, 680 per year ($890 a month).
Palforzia is taken orally and was developed to gradually reduce peanut sensitivities by exposing patients to refined versions of peanut flour. The company says that the ultimate goal is for users to become desensitized to peanuts so that accidental contact will no longer be potentially fatal.
About 1.6 million kids in the U.S. aged 4-17 suffer from peanut allergies, and sales for Palforzia are expected to be huge. Evaluate Pharma estimates that the drug could pull in over $1 billion in annual sales within four years.
There are also risks associated with taking Palforzia, and the FDA has mandated that users must also have a prescription for epinephrine to quickly combat a severe allergic response to the treatment.
Read the Reuters report.
