Here's Why Shares of Durect Jumped Higher Today

Shares of Durect (NASDAQ: DRRX) were up 23% at 1:53 p.m. EDT on Tuesday. The gains followed the release of first-quarter results after the closing bell Monday and disappointing trial results for Genfit (NASDAQ: GNFT), a fellow biotech developing a potential competitor to Durect's nonalcoholic steatohepatitis (NASH) drug.

It certainly wasn't Durect's financial report from the first quarter that has investors excited. The company only brought in $2.8 million in revenue and lost $9.9 million during the quarter.

Instead, investors are likely jumping on the pipeline update that the company is working with the Food and Drug Administration on plans for a phase 2 clinical trial testing its drug candidate DUR-928 as a potential treatment for COVID-19 patients with acute liver or kidney injury.

Source Fool.com