Cytori Therapeutics Inc (NASDAQ: CYTX)
Cytori Therapeutics is having an incredible day in the market today, and for good reason. The company made a key announcement with regard to a Phase 3 trial it is currently working on. Today, we'll talk about what we heard from the announcement, how the market reacted to the news, and what we can expect to see from CYTX moving forward. So, let's get right to it...
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CYTX Announces Positive News
Recently, the company announced positive news revolving around it's US Food and Drug Administration approved Phase 3 STAR trial surrounding fat harvest from small volume liposuction as well as finger injections. According to CYTX, it has enrolled and treated its 60th patient. This represents 75% of its target enrollment. Also, according to the announcement, an independent data monitoring committee has reviewed safety data associated with the trail. The safety data includes the first 40 patients. The company announced that a review of this data has led to a recommendation that the study be continued as planned. In a statement, Dr. Steven Kesten, Chief Medical Officer at CYTX, had the following to offer:
“The pace of enrollment has exceeded our original planning and is an indication of the openness and hope from physicians and their patients in the potential for cell therapy as a viable option for scleroderma. Based on screening and scheduling of patients, completion of enrollment will occur by mid-June. We remain exceedingly grateful to the investors, research staff and especially the patients who have participated.”
The Phase 3 clinical trial known as STAR is a randomized, placebo-controlled, double-blind, parallel group pivotal study that is investigating the efficacy and safety of the ECCS-50 injection created by CYTX. This injection is placed into the fingers of patients with impaired function from scleroderma.
How The Market Is Reacting To The News
One of the first things we learn as investors is that the news moves the market. Any time we see positive news that surrounds a publicly traded company, we can expect to see gains in the stock associated with that company as a result. Adversely, negative news will generally lead to negative movement. With that said, CYTX is having an incredible day in the market today as a result of the positive news that was released. Currently (10:27), the stock is trading at $0.35 per share after a gain of $0.01 per share or 4.15% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Cytori Therapeutics. The reality is that the company has been working on the ECCS-50 injection for quite some time, and I've been following the trials as they have gone. So, far, all news surrounding the treatment has been overwhelmingly positive. This leads me to believe that upon submission of the NDA to the United States Food and Drug Administration, the treatment offered by CYTX will not only be accepted, but approved. Unfortunately scleroderma affects a large number of people. This leads to a strong opportunity for CYTX to generate profit from its treatment in the long run. All in all, things are looking great for Cytori.
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What Do You Think?
Where do you think CYTX is headed and why? Let us know your opinion in the comments below!
[Image Courtesy of Flickr]