Woke up this morning to see that Furiex Pharmaceuticals (FURX) was up close to 50% (!) in pre-market trading. The company confirmed that its commercial partner, Takeda Pharmaceutical, had received FDA approval for three Type 2 Diabetes therapies. Several of these had already been approved in Japan with Furiex receiving royalties. In addition to unlocking a $25m milestone payment due to the approval, Furiex will also be entitled to “royalties on sales in the US and potential sales-based milestones”. I guess Chairman Fred Eshelman knew what he was doing when he continued to scoop up shares last year.
A little nostalgia here for us as Furiex’s spinoff in 2010 was one of the very first executed after this site was launched. We didn’t provide much coverage of the situation at the time, but we did highlight an excellent article at Above Average Odds which made a strong case for the name and noted its classic ‘spinoff dynamics’. Kudos.
Disclosure: Author (unfortunately) holds no position in any stock mentioned.