BriaCell Therapeutics Corp (NASDAQ: BCTX) is rocketing in the premarket hours this morning, and for good reason. The company, specializing in targeted immunotherapies for advanced breast cancer, announced positive clinical results.
Here’s the scoop:
BriaCell Therapeutics Announces Positive Data
As mentioned above, BriaCell Therapeutics is making its way for the top after announcing positive clinical data. The data, surrounding the company’s lead product candidate, Bria-IMT, was summarized for a poster presentation held at the American Association for Cancer Research Annual Meeting.
In the release, BriaCell said the findings indicate disease control in advanced breast cancer patients. This is characterized as stable disease, partial response, or complete response.
The company went on to explain that disease control was most significant in patients with Grade I/II tumors or those that matched Bria-IMT at 2 or more HLA alleles. Patients with low or undetectable levels of circulating cancer cells were more likely to benefit from the therapy.
BriaCell Therapeutics went on to say that patients treated with the Bria-IMT regimen alone or in combination with immune checkpoint inhibitors including KEYTRUDA and retifanlimab.
The poster, titled, “Predictors of response to a modified whole tumor cell immunotherapy in patients with advanced breast cancer from two phase I/IIa trials,” outlines the fact that the Bria-IMT regime with or without checkpoint inhibitors is able to induce an effective response and disease control in heavily pretreated breast cancer patients.
Moreover, the data suggests that Delayed Type Hypersensitivity to Bria-IMT analysis identified a group with significantly higher rates of disease control and progression-free survival in both monotherapy and combination therapy studies.
A Short Squeeze In The Making
The positive data released by BriaCell Therapeutics is enough to send the stock on an upward trend. However, that may not be the only factor that’s playing a role in the movement today.
The fact of the matter is that the stock is known to experience incredibly heavy short interest. In fact, throughout march, short volume ranged from more than 20% to more than 30%.
When heavily shorted stocks start to tick up, those with short positions lose money, leading them to race to cover, which is just market jargon for buying shares. These shares are purchased to close short positions, but in doing so, short sellers actually push the stock for dramatic gains on high volume.
Considering the heavy short interest on the stock, and the positive news that was released by the company this morning, a big short squeeze may just be beginning.
The Bottom Line
All told, BCTX stock is one to watch closely. The company’s work in advanced breast cancer seems to be paying off with overwhelmingly positive data coming from heavily pretreated patients.
At the same time, a short squeeze may be starting, suggesting that significant gains may be achieved both in the short and long-term pictures. All in all, if you’re not watching the stock yet, you could be missing out!