Despite having a market cap of less than $50 million, Aquinox Pharmaceuticals Inc. (NASDAQ: AQXP) made waves in the market on Friday morning with shares up over 200%. The company announced results from its Phase 2 Leadership trial with AQX-1125 in patients with bladder pain syndrome/interstitial cystitis (BPS/IC). Aquinox also provided a general business update and reported financial results for the second quarter, ending June 30, 2015.

For some background: Aquinox is a clinical-stage pharmaceutical company discovering and developing targeted therapeutics in disease areas of inflammation and immuno-oncology.

In terms of its financial results, the company had cash, cash equivalents and investments totaling $29.0 million at the end of the second quarter, compared to $41.1 million at the end of December 2014. At the same time, the net loss was $4.8 million, compared to a net loss of $5.4 million for the second quarter of 2014. This decline in net loss reflected the decrease in research and development expenses.

Aquinox reported top line results from its Leadership trial on June 25, 2015 that did not reach statistical significance in its primary endpoint. However, the results demonstrated an encouraging trend in pain reduction for patients treated with AQX-1125 as compared to the placebo.

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Separately the company now anticipates top line data for AQX-1125 in the Kinship trial earlier than previously guided, now expected in the fourth quarter 2015.

Mr. David Main, president and CEO of Aquinox, commented on the Phase 2 results:

Consistently positive results from multiple secondary endpoints have strengthened our confidence in further development of AQX-1125 for BPS/IC. The encouraging effect of AQX-1125 observed on the primary endpoint of reduction in pain together with several statistically significant secondary endpoints, underscore the potential of AQX-1125 as a once daily, oral therapy for this debilitating disease.

He continued:

We believe the next steps for AQX-1125 in BPS/IC include finalizing our pivotal trial designs in consultation with the appropriate regulatory authorities, including the FDA and EMA, to set a path to potential approval.

Shares of Aquinox were up 239% at $6.07 Friday morning. The stock has a consensus analyst price target of $5.00 and a 52-week trading range of $1.38 to $12.28.

UPDATE:

Shares of Aquinox were up 429% at $9.46 with twenty minutes left in the regular trading session. Over 59 million shares have moved on the day so far.

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