Shares in Vancouver-based Allon Therapeutics Inc. gained six cents, or almost 11 per cent, Tuesday to close at 62 cents after the company announced it has won approval for a fast-track review from U.S. regulators for its drug davunetide.

Davunetide is proposed for use in the treatment of progressive supranuclear palsy (PSP), a rapidly progressing and fatal degenerative brain disease.

It may also prove effective in the treatment of Alzheimer's disease, but that is yet to be proven in a lengthy review process.

Allon's three-month chart

Fast-track approval is designed to expedite review of an experimental drug that has the potential to treat a life-threatening condition for which there is no available treatment.

PSP affects 20,000 people in the United States and 50,000 in the European Union.

Fast-track status shows the "desperate" need for therapies in this debilitating disease, Allon CEO Gordon McCauley said in a release.

Such status "provides for early and frequent communication between the FDA [U.S. Food and Drug Administration] and Allon to resolve questions and issues quickly," said McCauley. "It will ensure that we work with the FDA to gather the critical data needed for approval."

Allon is planning Phase 2 PSP clinical trials later this year to gather evidence about whether the drug is safe and how well it works.

PSP affects balance and walking, eye movement, reasoning and personality. Its victims are usually between 45 and 65 years of age and, on average, the disease kills within eight years of onset.