Following a “positive top line results” in a “proof-of-concept clinical trial” revolving around its oral medication used to combat and treat psoriasis, shares in the Fort Washington, Pa.-based Vitae Pharmaceuticals nearly doubled before coming back to Earth later in the day.

Vitae Pharmaceuticals

Clinical trial a success for Vitae

Presently, treatment for the auto-immune disorders is generally dominated by injectable antibody therapy, but Vitae is hoping that its oral treatment might offer new hope for both stakeholders in the company and sufferers of psoriasis. Psoriasis, is a fairly common condition where skin cells build up to essentially form scales on the skin or in milder cases — dry, itchy patches of skin.

The medication, which if approved will certainly get a sexier name than VTP-43742, was recently put through a double-blind, randomized, placebo-controlled trials that the company and analysts are roundly calling a success. In addition to the treatment of psoriasis, the company hopes that it’s pill can help with the treatment of other auto-immune disorders. However, the trial concentrated on psoriasis patients. The participants received multiple doses over a four-week trial according to the company.

Those that received dosages of 350 milligrams showed a 24% reduction of psoriasis compared to the placebo group; while those that received a “double dose” of 700 milligrams showed a 30% reduction in their patches of psoriasis.

Later this year, the company is planning a 16-week clinical trial in order “to continue to asses the efficacy, safety and tolerability” of the medication, Richard Gregg, the company’s chief scientific officer, said in a statement issued with the announcement.

Stock’s poor year gets a boost in trading today

Late in 2015 (December 29), Vitae shares were trading at $18.31. However, prior to today’s announcement shares had declined 77% in 2016 and closed trading Wednesday at $4.11.

However, following the company’s announcement shares opened the day at $7.46. The stock continued to rise nearly reaching double Wednesday’s close. While the stock price came back to Earth midday it’s once again on the rise and is  presently trading (2:41 EDT) at $7.42 up $3.31 or 80% on the day.

Not surprisingly, trading volume was through the roof. At the time of this writing, over 20 million shares traded hands today while the average 90-day volume is around 358,000.