In a late-stage study, Viridian Therapeutics' novel treatment for chronic thyroid eye disease showed effectiveness at reducing symptoms including double vision and eye bulging. News of the positive results from the study briefly raised the company's stock price by more than 26%.

Thyroid eye disease (TED) causes inflammation and damage to the tissues around the eye and is estimated to affect between 90 and 300 per 100,000 people in the US.

This latest success of the new antibody drug, veligrotug, follows a separate late-stage study in September where it helped reduce symptoms in patients with the immune system condition in both the active and early phases.

Viridian is "uniquely positioned…with line-of-sight to an approved drug in a validated commercial market in 2026 and a clear M&A candidate heading into 2025," Stifel analyst Alex Thompson told Reuters.

Analysts also expect veligrotug to become the first rival to Amgen's blockbuster therapy Tepezza, offering a more convenient treatment option for patients. While Tepezza requires a total of 8 intravenous infusions, each taking 60 to 90 minutes to complete, Viridian's drug requires 5 infusions that can be delivered in 30 minutes.

"This is no longer simply about shorter infusion times and course of therapy," Viridian CEO Steve Mahoney explained to Reuters. The drug's "differentiated clinical profile in (the study) just changed the game for chronic TED patients."

Viridian said its drug helped 48% of patients achieve at least a 2-millimeter reduction in eye bulging after 15 weeks of treatment when adjusted for placebo rates. Additionally, when adjusted for placebo rates, it helped 18% of patients achieve complete resolution of diplopia or double vision.

The 188-member study enrolled patients who have had the disorder for an average of 6 years. Adjusted for placebo rates, 9.6% of patients experienced treatment-related mild-to-moderate hearing impairment.