Aerie Pharmaceuticals Stages Monster Rally Following Positive Rhopressa Trial

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Aerie Pharmaceuticals Inc AERI shares were trading sharply higher by $12.50 (70 percent) at $30.50 in Thursday's session. The catalyst for the monster rally is an announcement that Rhopressa phase 3 trial achieved primary endpoint.

Rhopressa is a daily triple action eye drop that lowers intraocular pressure in patients with glaucoma or ocular hypertension.

During pre-market action, traders got a bit carried away and took the issue past its all-time high ($35.89), reaching $37.77 before succumbing to profit taking. By the open of the regular session, it retreated to the $32.50 area and after a brief pop off the open to $33.25, sellers once again came into the market.

So far, the retreat has reached $28.78, but has since rebounded back into the $30 handle.

It should be noted that the issue swooned from its April 23 close ($35.39) to $12.87 the following day when it announced the initial Phase 3 trial for Rhopressa missed its endpoint. With the issue back at these levels, it is not a surprise to see sellers surface at the same level off the favorable news.

Today's action is taking place on much heavier than average volume. With less than four hours remaining, 12.4 million shares have traded compared to its 20-day average of 1.27 million.