Benitec Biopharma Inc (NASDAQ: BNTC) is screaming for the top in the market this morning, but with no press releases from the company, many are wondering why the stock is ticking up.
The gains seem to be the result of a large institutional investment in the company. Here’s what’s going on:
Morgan Stanley Buys Benitec Biopharma
As mentioned above, Benitec Biopharma is rocketing this morning as investors react to the fact that Morgan Stanley has taken a large position in the company.
According to a Schedule 13G filing with the SEC, Morgan Stanley owns 249,174 shares of the company’s stock, putting the total value of Morgan Stanley holdings of the stock at about $794,865.
Investors tend to get excited when institutional investors dive in, and for good reason. These institutions not only have a compelling ability to research, they have a fiduciary responsibility to make the right moves by their investors. As such, when a large stake is taken in a relatively small company like Benitec Biopharma, retail investors tend to pay attention.
What Is Benitec Biopharma?
Benitec Biopharma is a clinical-stage biotechnology company with multiple candidates in its pipeline. However, the most interesting is BB-301, a proprietary DNA-directed RNA interference platform for which successful results were recently released.
The company is ultimately working to design and develop genetic medications that will enable target tissues to perpetually produce siRNA molecules for the facilitation of sustained silencing of disease-causing genes.
The company’s therapeutics take a silence and replace approach to genetic conditions, with BB-301 taking that approach as a potential option to treat Oculopharyngeal Muscular Dystrophy.
Should all go well, Benitec Biopharma could be sitting on a blockbuster. At the moment, there are no effective treatment options for patients with OPMD who eventually lose the ability to swallow liquids and solids, leading to a characterization among patients of malnutrition.
While there hasn’t been any news issued by Benitec Biopharma, there doesn’t need to be. The fact that Morgan Stanley has jumped in head first is exciting enough.
Nonetheless, that’s not the only reason to consider investing in the stock. Ultimately, Benitec Biopharma is on the leading edge of innovation in DNA and RNA medicines, and with positive data from a recent clinical trial, the company is clearly on the right track.
Moreover, by targeting conditions for which there are no approved treatments, the company will hit the ground running once it reaches commercialization stages, which likely plays a big role in the reason Morgan Stanley loaded up on the stock in the first place.
All told, BNTC is a ticker that you should be paying attention to.