Atossa Genetics Inc (NASDAQ: ATOS) is having an incredibly strong start to the trading session this morning. However, if you’re digging for press releases or SEC filings, you’re not going to find anything issued this morning.
Nonetheless, there’s a very good reason for the gains today. Below, we’ll talk about:
- Why ATOS stock is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s Why ATOS Stock Is Climbing
As mentioned above, Atossa Genetics is having a great day in the market today. However, with no press releases or SEC filings issued this morning, many are wondering why the stock is climbing. Here’s what’s happening:
ATOS is working on a treatment known as oral endoxifen, which is being compared to the current standard of care for breast cancer, known as tamoxifen. A recent study proved to show issues with tamoifen that oral endoxifen may solve.
The study, performed by a team at Harvard Medical School, unexpectedly found that the amino acid leucine, may play a role in the formation of resistance to tamoxifen. Tamoxifen is currently being used as a treatment for estrogen receptor-positive breast cancer. This is the same indication that the company is targeting with oral endoxifen.
With the issue found in tamoxifen, the market opens quite a bit for the company should oral endoxifen become approved, ultimately increasing the value of this asset under development. In a recent statement about the report, Dr. Steven Quay, CEO at ATOS, had the following to offer:
Having studied leucine metabolism for my Ph.D. in biological chemistry at the beginning of my career, this finding makes total sense. Cancer is a disease characterized by both genetic changes, that provide the “motivation” to grow abnormally, and metabolic changes, that provide the “means” to grow abnormally. Leucine sits at the hub of metabolic pathways that have broad, pleomorphic effects. This paper joins scores of others that show the powerful effects of metabolism, including diet, on cancer growth. In our research here at Atossa Genetics, we are always watching for signs of the interplay of genetics and metabolism to help inform our clinical stage, development programs for the prevention and treatment of breast cancer.
In other news, in an announcement yesterday, the company said that Mr. Quay will be presenting at the Precision: Breast Cancer World R&D Summit. The presentation will take place on April 25, 2019 at 2:00 pm ET. This presentation will open the door to potential partnerships as well as large investors and other key players in the market.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that th enews leads to moves. In the case of Atossa Genetics, while the company didn’t release any news of its own, the news that Harvard Medical School has found an issue with tamoxifen is great.
After all, this means that should oral endoxifen be approved, the treatment could take a larger share of the market, generating meaningful revenue for the company and its investors. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:56), ATOS is trading at $3.12 per share after a gain of $0.29 per share or 10.25% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ATOS. In particular, we’re interested in following the story surrounding the company’s continued work to bring oral endoxifen to market. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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