Acura Pharmaceuticals Climbs More Than 50% on Nexafed Deal

Shares of small-cap name Acura Pharmaceuticals

were among the leaders on the Nasdaq on Tuesday after the company announced that the Kerr Drug store chain will carry Acura's Nexafed drug. The product is a decongestant which is designed to be more difficult to use in the manufacture of methamphetamine without sacrificing efficacy. Acura began selling Nexafed in December, with a focus on independent drug store chains. The company said that its product will be sold in Kerr's approximately 75 locations in North Carolina. Acura also said on Monday, when it released its Q4 financial results, that it has entered distribution agreements for Nexafed with most regional and national drug wholesalers. For the fourth-quarter, Acura lost $3 million or $0.06 per share, compared to a loss of $1.6 million or $0.03 per share, in the fourth-quarter of 2011. The company had no revenue in the most recent quarter. Nexafed is a decongestant that contains pseudoephedrine, a key ingredient in the manufacture of methamphetamine. Nexafed, however, contains ingredients that turn into a thick gel if an attempt is made at extracting the pseudoephedrine. Acura claims that the drug will deliver the same cold and allergy relief as other pseudoephedrine versions at a similar cost. On Tuesday, the stock was trading up around 52 percent in the final hour of trade to $3.11. Over the last year, ACUR has lost around 7 percent, although the shares have been very volatile. Year-to-date, the stock is now up around 41 percent. Acura Pharmaceuticals is a Palatine, Illinois-based biotechnology concern with a market cap of around $143 million.