Mast Therapeutics Inc (NYSEMKT: MSTX)
Mast Therapeutics is having a great day in the market today following the same yesterday. So, I thought it would be fun to dig in and see what all the fuss was about; and of course figure out whether or not the climb can continue. So, let’s get right to it.
What Is Causing The MSTX Climb?
Mast Therapeutics is a clinical stage biopharmaceutical company that is working to develop therapies for heart failure, arterial disease, and sickle cell disease. Recently, the company announced that they have enrolled patients for an incredibly important study revolving around their primary product candidate known as vepoloxamer (MST-188). The test will be conducted on 205 randomized patients with sickle cell disease that has surpassed the halfway point. In an announcement, Brian M. Culley, MSTX CEO had the following to say…
“Consistent with projections we set for ourselves more than 18 months ago, we remain on track to announce top-line data in the first quarter of 2016. Our clinical operations team has opened more than 70 sites in ten countries, with more than two-thirds of those sites located in the U.S. In the next few months, we will be opening new sites in at least four additional countries.”
How MSTX Reacted To The News In The Market
At this point, clinical testing and proof of concept for prospective treatments is absolutely critical for MSTX. With the positive news coming out that the sickle cell study will be started relatively soon, we saw the reaction in the market that we would expect; a positive one. Yesterday, MSTX climbed from $0.47 per share in early morning trading to $0.49 per share by the end of the day. However, the growth we’re seeing today far surpasses what we saw yesterday. Currently (2:31), Mast Therapeutics is trading at $0.51 per share after a gain of 6.25% so far today.
What We Can Expect From MSTX Moving Forward
Moving forward, at least in the short term, I think we’re going to continue to see positive gains. Only time will tell how effective vepoloxamer will be proven to be; so, at this point, I’d rather not speculate on the long term. However, what we’re seeing right now is a company that’s making big moves in the right direction. That’s going to get traders and investors alike excited. So, I’m expecting to see positive movement in the market.
Warning – It’s important to note that when we talk about Mast Therapeutics, we’re talking about a small-cap biotech stock that is incredibly volatile. If you’re not ready to handle volatile price movement, this is not the stock for you.
What Do You Think?
Where do you think MSTX is headed and why? Let us know in the comments below!