Relypsa Surges 30% Following Setback From Rival AstraZeneca

Shares of Relypsa Inc (NASDAQ: RLYP) surged higher by more than 30 percent early Friday morning on no corporate news or rumors.

According to the TheStreet'sAdam Feuerstein, Relypisa scored a "big win" on Friday after its chief rival AstraZeneca plc (ADR) (NYSE: AZN) confirmed the U.S. Food and Drug Administration sent a Complete Response Letter (CRL) concerning its hyoperkalaemia treatment known as ZS-9.

Related Link: AstraZeneca Remains Committed To Development Of ZS-9 Despite Letter From FDA

Feuerstein suggested that AstraZeneca's setback is "fantastic news" for Relypsa, who just secured FDA approval for its rival drug Veltassa last October. He also noted that AstraZeneca didn't offer a timeline for when it will attempt to secure FDA approval again which implies Relypsa has the commercial market all to itself.

"With the near-term competitive threat from ZS-9 gone, Relypsa has the opportunity to stake out a commanding lead with Veltassa before AstraZeneca can even get to the starting line," Feuerstein concluded.