Replimune Group Inc. (REPL) shares skyrocketed by 80.27% in intraday trading on Wednesday, building on the previous day's gains. This dramatic surge comes in the wake of a significant development at the U.S. Food and Drug Administration (FDA).

The catalyst for this remarkable rally appears to be the departure of Vinay Prasad, the FDA's chief medical and science officer. This personnel change is being viewed as a positive development for the biotech sector, particularly for companies specializing in gene therapies and rare diseases. Industry analysts suggest that Prasad's exit could potentially lead to a more favorable regulatory environment for innovative therapies.

Replimune Group, which focuses on developing novel oncolytic immunotherapies, has seen its stock price under pressure in recent months. In July, the FDA declined to approve the company's experimental skin cancer drug, RP1, for advanced melanoma. However, the market's enthusiastic response to the FDA leadership change suggests renewed optimism about the company's prospects. As the biotech sector adapts to this shift in the regulatory landscape, investors will be closely watching for any signals of a more accommodating approach to novel therapies.