Immunomedics, Inc. (NASDAQ: IMMU)
Immunomedics is having an incredible day in the market today and for very good reason. The company recently received word from the FDA with regard to an investigational antibody drug conjugate it has been working on known as sacituzumab govitecan (IMMU-132). Today, we’ll talk about the news from the FDA, how the market is reacting, and what we can expect to see from IMMU moving forward. So, let’s get right to it…
Trade smarter and make more money with Tradespoon!
IMMU Receives Great News From The FDA
This morning, it was announced that the United States Food and Drug Administration has granted Breakthrough Therapy Designation for a treatment that IMMU is working on. The treatment, known as sacituzumab govitecan is designed to treat patients with triple-negative breast cancer, also known as TNBC, who have failed at least two prior therapies for metastatic disease. This is incredible for IMMU because it means that when the company submits its NDA, it will likely be processed much faster than average. There are also several other perks that come along with the Breakthrough Therapy Designation. Currently, Immunomedics is working on the Phase 2 study of the treatment, which is expected to yield incredibly positive results. In a statement, Cynthia L. Sullivan, President and CEO at IMMU had the following to say…
“We believe Breakthrough Therapy Designation for IMMU-132 further validates this potential therapeutic for patients with TNBC, and we are delighted to receive this important recognition… We continue to assess partnering opportunities while completing the scale-up manufacturing and regulatory activities for an international, randomized, controlled, registration trial oin TNBC, based on the Special Protocol Assessment agreement that was already granted by the FDA…”
How The Market Reacted To The News
As investors, we have learned that when positive news comes out with regard to a publicly traded company, we can expect to see a positive reaction in the market. The Breakthrough Therapy Designation is incredibly positive for IMMU and opens several doors. So naturally, we’re seeing strong gains in the value of the stock today. Currently (10:41), IMMU is trading at $2.41 per share after a gain of $0.59 per share or 32.47% so far today.
What We Can Expect From IMMU Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Immunomedics. The company is releasing a slew of positive news as of late, and it all suggests that trials of the IMMU-132 therapy are going incredibly well. Now, with the Breakthrough Therapy Designation offered by the United States Food and Drug Administration, investors have even more to be excited about. However, it is important to keep in mind that price movement tends to happen through a series of overreactions. While IMMU is seeing gains and gains are justified, more than 30% growth isn’t likely to stick for too long, this one’s trading on a high. So, if you’re considering getting in on the stock, it would be a good idea to wait a day or two for the slight correction that is surely coming. Nonetheless, Immunomedics is a great company and I’m expecting to see incredible growth from the stock moving forward.
Don’t waste your time! Click here to find winning trades in minutes!
What Do You Think?
Where do you think IMMU is headed moving forward and why? Let us know your opinion in the comments below!
[Image Courtesy of Wikipedia]