First Wave BioPharma’s stock more than doubles after deal to sell its IBD treatment

Shares of First Wave BioPharma Inc.
FWBI,
-10.45%
rocketed 123% in premarket trading, which puts them on track for a record one-day gain, after the biopharmaceutical company announced an agreement to sell its Niclosamide treatment of inflammatory bowel disease to an “undisclosed biopharmaceutical company.” The stock is currently the biggest gainer among those listed on major U.S. exchanges. First Wave said the agreement includes a “seven-figure” upfront payment and potential milestone and royalty payments. The company said the deal will allow it to focus its development resources on its other late-stage clinical programs. The stock has tumbled 38.5% over the past three months through Tuesday, while the iShares Biotechnology ETF
IBB,
-0.86%
has gained 9.7% and the S&P 500
SPX,
-0.28%
has rallied 11.7%.