Allergan Inc. shares moved up more than 5% Wednesday after U.S. regulators said the company's Restasis drug for dry eye disease was nearing approval.
The Irvine company's shares climbed $5.50 to $107.31. Earlier in the session, the stock touched $108 a share.
After U.S. markets closed Tuesday, Allergan said the Food and Drug Administration had issued an "approvable" letter, meaning the agency wants to approve the drug once final issues are worked out with the company.
The positive news from the FDA was a surprise. Last month, an expert advisory panel to the agency recommended that the FDA not approve the drug, as the company had never proved Restasis was more effective than over-the-counter artificial tears.