August 4, 2014 / 3:33 PM / in 4 years

CORRECTED-Tekmira Pharma shares give up sharp gains after Ebola report

(Corrects paragraph 2 to Biopharmaceutical instead of Biophamaceutical; corrects paragraph 3 to U.S. Food and Drug Administration instead of U.S. Federal Drug Administration)

Aug 4 (Reuters) - Shares of Tekmira Pharmaceuticals soared on Monday, only to slump after a CNN report suggested another company could be first to see its Ebola treatment used to treat an outbreak in Africa.

CNN reported Monday that two American missionary workers who had contracted Ebola were treated with varying success by a drug from biotech company Mapp Biopharmaceutical Inc, a private company.

Tekmira was one of a few companies to have developed Ebola treatments advanced enough to be tested on people. In July, the U.S. Food and Drug Administration placed a hold on a clinical trial for a Tekmira drug in development due to safety concerns. On Friday, however, the FDA said it “stands ready” to work with patients in need of treatment.

Hope that Tekmira’s drug might be used in the wake of the outbreak sparked a furious rally in the shares Monday morning. The stock gained more than 18 percent before slumping on the news that a drug developed by Mapp had been used to treat two patients.

The stock, as of late morning, was down 0.4 percent to $14.20 a share with more than 6.7 million shares traded, the busiest day in the stock’s history.

The Mapp Biopharmaceutical drug, ZMapp, has not been approved for human use yet, according to CNN. The two patients were reported to be in stable condition after being given the drug.

Reporting By Akane Otani Editing by W Simon

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