Shares of a company making a 'female Viagra'-like drug are skyrocketing

The FDA backed a so-called "female Viagra" drug on Thursday, and now, the stock of a company that's making a similar drug is surging.

Palatin Technologies jumped more than 46% in early trading on Friday.

The FDA's advisory committee voted 18-6 in favor of flibanserin, designed to boost sex drive in women who suffer from a distressful lack of sexual desire. Business Insider's Erin Brodwin has the full details of what the drug is designed to do.

Palatin has a market cap of $55 million, and its shares climbed to as high as $1.58 in trading on Friday morning.

But the drug could be huge for the company although it's being developed by Sprout Pharmaceuticals, a private company.

Palatin is developing bremelanotide, another drug for female sexual dysfunction, according to Reuters.

In a note, Canaccord Genuity analysts raised their price target to $6 from $4, and maintained their "buy" rating.

They wrote:

"We believe this has significant read through for PTN, since this will possibly be the first drug to be approved for female sexual dysfunction given the twice rejection from the FDA on Flibanserin previously, lifting the regulatory risk for this class of drugs."

Shares of the company are now up 83% year-to-date, and up 22% over the past 12 months.

Here's a chart showing the pop in shares on Friday:

Google Finance

NOW WATCH: Spontaneous sex is a myth - here's how a 'sex schedule' could save your relationship

Please enable Javascript to watch this video