Celsion Corporation (NASDAQ: CLSN) is having an overwhelmingly rough day in the market today. It seems as though investors have pushed the stock to its limit and, at this point, are driving the value down. Before we get into the details, we’d like to give a thank you to our partners at Trade Ideas for being the first to alert us to the movement. At the moment (9:41), CLSN is trading at $4.12 per share after a loss of $1.94 per share (32.01%) thus far today.
CLSN Declines Are An Overreaction
The reality is that most moves that happen in the market happen as overreactions. When a company like Celsion Corporation releases overwhelmingly positive news, as they recently did, the stock flies further up than it should go in many cases. From there, we tend to see a correction in which the stock declines, once again, further than it should.
At the moment, we’re on the declining trend with CLSN. Investors have pushed the stock to what they see as the limit and they are taking profit, causing the stock to dive dramatically toward the bottom. However, as mentioned above, the stock really shouldn’t be falling this far considering the strong clinical data they just released. So, buying at the bottom could prove to be a great move as it will allow you to get into the stock at a great discount.
Recent Data Says This Stock Could Fly
Yesterday, news broke with regard to CLSN. The company released clinical and transitional data from its OVATION Study, which is a Phase 1b dose-escalating clinical trial that combined GEN-1 with the standard of care for the treatment of newly-diagnosed patients with advanced stage III/IV ovarian cancer who will undergo neoadjuvant chemotherapy followed by interval debulking surgery. The data released by Celsion proved to be overwhelmingly positive. Here’s what we saw:
- The treatment showed a 100% disease control rate, 86% objective response rate and 86% R0 & R1 Surgical Resection Rate in all patients treated in four dose-escalating cohorts.
- Clear evidence of biological activity including dose dependent increases in inflammatory cytokines (IL-12 and IFN-g), decreases in VEGF levels and no dose-limiting toxicities were seen.
- Finally, the expert advisory board endorses randomized Phase II in newly diagnosed Stage III and IV Ovarian cancer.
In a statement, Dr. Kunle Odunsi, Deputy Director, Chair of Gynecologic Oncology and Center for Immunotherapy Executive Director at Roswell Park Institute, had the following to offer with regard to CLSN data:
“These distinct immunological changes in the local disease environment are likely to translate into clinical benefit and warrant the continued development of our GEN-1 IL-12 immunotherapy as a potential adjuvant, in both first and second-line ovarian cancer… Furthermore, pro-immune changes in the tumor microenviromnet appear to support research combining GEN-1 with other exciting immuno-oncology therapies including adaptive T-cell and check point inhibitors.”
The above statement was followed up by Dr. Nicholas Borys, SVP and CMO at CLSN. Here’s what he had to say:
“We have completed enrollment of our Phase 1b OVATION Study in newly diagnosed ovarian cancer patients to determine GEN-1’s clinical and biological activity in combination with standard chemotherapy. The remarkable surgical outcome for all patients completing the prescribed eight week treatment of GEN-1 reinforce our belief in the promise of GEN-1’s ability to work safely and effectively in advanced ovarian cancer… The Advisory Board Meetings held in late September 2017 with our clinical investigators and scientific experts in immuno-oncology provided an important endorsement of our development program for this innovative immunotherapy for first line ovarian cancer.”
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on CLSN. In particular, we’re interested in following the ongoing work surrounding GEN-1. Considering the positive data we’ve seen out of the OVATION study, the massive declines that we’re seeing on the stock today are simply posing an opportunity for strong gains in the future. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!