|AcelRx Gets Contract from Department of Defense for ARX-04, Shares Jump|
|By William Kent|
|Thursday, 14 May 2015 17:43|
AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX)’s shares jumped as much as 155 after the company has confirmed entering into Contract No. W81XWH-15-C-0046 amounting to $17.0 million that would be given by United States Army Medical Research and Materiel Command within the U.S. Department of Defence.
This contract gives part funding for the current development of ARX-04 both for manufacturing and regulatory activities.
ARX-04 is in development in a disposable and single-dose applicator (SDA) for anticipated treatment of moderate-to-severe acute pain.
Howie Rosen, AcelRx interim Chief Executive Officer, opined that the initiation of Phase 3 study of ARX-04 as well as DoD's support of ARX-04 is delighting to the firm.
This funding would permit completion of Phase 3 development program along with manufacturing activities and making the product ready for the potential submission of a New Drug Application.
He added that the relation with DoD started in 2011 through a $5.6 million grant for funding Phase 2 development and believes that ARX-04 would potentially give amazing benefit to the servicemen as well as women in armed forces besides presenting promising commercial opportunities in a wide range of medically-supervised settings like emergency rooms and short-stay surgeries.
The DoD would be reimbursing AcelRx for costs spent on development, manufacturing and clinical costs outlined in the contract, especially for certain personnel and overhead expenses. The development activities are aimed at including completion of Phase 3 clinical program as well as manufacturing development activities over the next 18-months.