Histogenics Corp (NASDAQ: HSGX) is having an incredibly strong start to the trading session this morning. However, if you go digging for news, you’re not going to find anything recent. That doesn’t mean that there’s no fundamental reason for today’s gains. Below, we’ll talk about:
- Why HSGX is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why HSGX Is Up
As mentioned above, Histogenics Corporation is having a strong day in the market today, but has released no news. So, what’s the deal? Well, the company is likely to see quite a bit of activity throughout the month of October. That’s because, the company has a Type C meeting with the FDA on October 30, 2018.
During the meeting, HSGX and the FDA will discuss the topline results from the company’s NeoCart Phase 3 clinical trial and the company’s planned Biologics License Application (BLA) submission. Of course, if all goes well during the meeting, the company is likely to submit its BLA relatively soon.
Although this news was released days ago, the reality is that it is huge for this small, clinical-stage biotechnology company. After all, if HSGX does submit its BLA soon, it may be hitting the market soon, pushing it from clinical-stages to commercial stages and giving the company the opportunity to generate revenue. So, investors are waiting anxiously for the news.
What We’re Seeing From The Stock
One thing that we know as investors is that excitement and anticipation are some of the largest reasons for gains in the market. When it comes to Histogenix, anticipation is leading to the run that we’re seeing in value today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:57), HSGX is trading at $0.92 per share after a gain of $0.26 per share or 39.38% 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 HSGX. In particular, we’re interested in following the story surrounding the company’s continued work to bring NeoCart to market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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