Prana Biotechnology Jumps to 52-Week High on Progress of Experimental Alzheimer's Drug

NEW YORK - Shares of Prana Biotechnology Ltd. surged to a new 52-week high after the tiny Australian biotech drug maker said Monday it plans to start a mid-stage clinical trial of its experimental Alzheimer's disease drug in the fourth quarter.

Prana shares rose $1.08, or 65 percent, to $2.74 in morning trading on the Nasdaq. Shares, which have traded between $1.21 and $2.40 over the past 52 weeks, reached a high of $2.90 earlier in the session.

The announcement comes after the company released mouse data showing the drug candidate PBT2 improved memory in five days, reduced a type of protein deposit in the brain associated with Alzheimer's, and restored function to nerve tissue impaired by the protein deposits.

Early-stage human studies have shown that PBT2 is safe in the doses proposed for treatment. The company said that a successful mid-stage clinical trial may lead to a late-stage clinical trial needed for regulatory approval.

However, Prana said that it would be at least five to six years before the drug could be developed for commercial sale.