Moleculin Biotech Inc (NASDAQ: MBRX) is running for the top in the market this morning, trading on gains of nearly 100% after announcing that a preclinical treatment led to a 100% survival rate in animals with metastatic osteosarcoma. Here’s what’s going on:
Skip to What You Want to Read
- Moleculin Biotech Announces Positive Oncology Data
- Management Commentary
- Why This News Is Exciting
- Is MBRX Stock the Next Wall Street Bets Target
- What Analysts Think About MBRX Stock
- Risks to Consider Before Buying MBRX Stock
- Final Thoughts
Moleculin Biotech Announces Positive Oncology Data
As mentioned above, Moleculin Biotech announced overwhelmingly positive oncology news. The company said that in preclinical studies, its Annamycin led to a 100% survival rate in animals diagnosed with metastatic osteosarcoma at day 130.
The arm of untreated animals had a survival rate of just 10% at day 130.
MBRX went on to explain that Annamycin is an anthracycline that has recently been shown in animal models to accumulate in the lungs up to 34 times the level of doxorubicin. It is believed that this accumulation plays a major role in the 100% survival rate.
Moreover, the treatment has demonstrated a lack of cardiotoxicity in recently conducted human trials. In these trials patients with acute myeloid leukemia were treated with the candidate. As a result, Annamycin isn’t expected to face the same dose limitations imposed on doxorubicin.
Finally, MBRX reminded investors that the FDA has allowed the company’s request for IND status in order to study Annamycin for the treatment of soft tissue sarcoma metastasized to the lungs.
In a statement, Walter Klemp, Chairman and CEO at Moleculin Biotech, had the following to offer:
Our ongoing sponsored research continues to expand the potential uses for Annamycin. We expect that one, and potentially two, clinical trials in sarcoma lung metastases should be up and running this year.
Why This News Is Exciting
The news released this morning is a significant step in the right direction for the osteosarcoma community. These tumors start in the bones and about 40% of bone sarcomas will eventually metastasize to the lungs, where treatment is an issue.
Once the cancer has metastasized to the lungs, the tumors cannot be surgically removed. Only between 10% and 30% of patients initially respond to doxorubicin, and most will relapse, leaving these patients with no options.
If the data continues to be positive, MBRX may offer the option that patients in this category are looking for. Moreover, if the treatment proves this effective in human trials, it could become the standard of care in the osteosarcoma indication.
Moreover, this is yet another feather in the company’s cap, suggesting that its lead candidate is incredibly effective in treating a wide array of cancers.
Is MBRX Stock the Next Wall Street Bets Target
With the Wall Street Bets Reddit garnering so much attention, it’s hard not to wonder if Moleculin Biotech stock will be the next target for a short squeeze.
The move would make sense.
With a short volume ratio of around 26%, MBRX stock experiences heavy short interest. Moreover, with a public float of just 51.88 million shares, supply of shares is limited, which could lead to increased gains.
Considering the current metrics surrounding MBRX, there’s a strong chance that retail investors will jump on the stock, squeezing the shorts out and sending the stock for the top.
What Analysts Think About MBRX Stock
Analysts seem to have a positive opinion of MBRX stock. At the moment, there are three analysts covering the stock, all three of whom have rated the stock a Buy.
In terms of price targets, the median is $3.33 with a high target of $5 per share and a low of $2. However, it’s important to remember that these targets are largely outdated and don’t take recent news, nor growth in the stock into account. As a result, upon review, price targets are likely to increase.
Also, keep in mind that it’s never a good idea to blindly follow any expert’s opinion with your money. Always do your own research and use the experts to validate your own educated opinions.
Risks to Consider Before Buying MBRX Stock
An investment in Moleculin Biotech, or any other stock for that matter, is going to come with risk. It’s just the name of the game. Some of the most significant risks associated with MBRX include:
- Penny Stock Risk. Moleculin Biotech is a penny stock. Stocks that trade in this category experience high levels of volatility, making it difficult to time entrance and exit decisions. Moreover, most stocks in this category are operating unproven business models and aren’t quite profitable, bringing us to our next point.
- Profitability. As a clinical stage biotech company, MBRX has no products on the market and is unable to generate revenue. As a result, it is far from profitable. If the money in the bank isn’t enough to last until profitability is achieved, it will likely issue new shares to raise funds, diluting value for existing shareholders and resulting in declines.
- Clinical & Regulatory Risk. As a clinical-stage biotechnology company, MBRX is at the mercy of clinical data. Should a clinical trial fail, significant declines may be the result. Moreover, once clinical trials are complete, the company is subject to regulatory review. If regulators find holes in the data, declines may be the result.
The news released by Moleculin Biotech this morning is groundbreaking. A 100% survival rate in this indication is unheard of at 130 days. While this was animal testing, not human testing, it’s a strong indication that the therapy will be a positive one that could take the market by storm.
Moreover, with the short squeeze potential offered up by MBRX stock, it’s one that’s hard to ignore at the moment.