Novan's Stock Rockets After Positive Trial Results

Shares of Novan Inc. rocketed 65% in premarket trade Wednesday, after the drugmaker announced positive results of a Phase 2 trial of its skin and nails treatment. Novan is developing an antifungal gel, SB208, for the treatment of superficial cutaneous fungal infections of the skin and nails, including tinea pedis, or athlete's foot, and onychomycosis. The company said SB208 deomonstrated "statistically significant effect" compared with vehicle in a clinical trial in patients with athlete's foot. " Our ability to deploy antimicrobial doses of nitric oxide in this trial gives us confidence to move forward in the development of a potential treatment for hard-to-treat infections like onychomycosis," said Chief Executive Nathan Stasko. The stock has plunged 81% year to date through Tuesday, while the S&P 500 has gained 5.1%.