Mustang Bio Inc (NASDAQ: MBIO) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that the New England Journal of Medicine published data from St. Jude Children’s Research Hospital, painting its drug in a positive light.
As you could imagine, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The publication;
- what we’re seeing from MBIO stock as a result; and
- what we’ll be watching for ahead.
MBIO Stock Rockets On Publication
As mentioned above, Mustang Bio is having a great day in the market today after announcing that the New England Journal of Medicine published data from St. Jude Children’s Research Hospital. The announcement came by way of press release early this morning.
In the release, MBIO said that the data came from a Phase 1/2 clinical trial of a lentiviral gene therapy. The therapy is designed for the treatment of newly diagnosed infants under two years old with XSCID, also refered to as SCID-X1 and commonly known as bubble boy disease.
The company said that under a licensing agreement with St. Jude, it will develop the lentiviral gene therapy for commercial use under the name MB-107. In the Phase 1/2 trial, a total of 10 infants received the therapy to date. Here is the data from the trial:
- Bone marrow harvest, busulfan conditioning and cell infusion were well tolerated.
- In seven of the eight cases, normalization of CD3+, CD4+ and CD4+ naïve T-cell and natural killer (“NK”) cell numbers occurred within three to four months after treatment, accompanied by vector marking in T, B, NK and myeloid cells and marrow progenitors.
- The eighth infant had insufficient T cells initially, but normalization of T cells occurred following an unconditioned boost of gene-corrected cells, and the patient is progressing favorably.
- All patients cleared previous infections and are growing normally.
- Seven of the eight infants treated have developed normal IgM levels to date.
- Four of these seven infants have discontinued monthly infusions of intravenous immunoglobulin (IVIG) therapy to date.
- Three of those four infants that discontinued monthly IVIG infusions have responded to vaccines to date.
- Most patients were discharged from the hospital within one month.
In a statement, Martina Sersch, M.D., Ph.D., CMO at MBIO, had the following to offer:
We are extremely encouraged by the Phase 1/2 clinical data published in the New England Journal of Medicine. They underscore the potential of MB-107 as a novel approach and potentially curative treatment option for newly diagnosed infants with XSCID. We are excited to continue working with St. Jude to evaluate MB-107 in this clinical trial, and we look forward to transferring the IND to Mustang by the end of this year, after which patients’ cells from all three participating clinical trial sites will be processed in our Worcester, Mass., facility.
The above statement was followed up by Manuel Litchman, M.D., President and CEO at MBIO. Here’s what he had to offer:
In addition to the newly diagnosed infants with XSCID, we believe there are hundreds of patients with the disease who have been treated with hematopoietic stem cell transplantation, but who are experiencing decreasing T cell immunity and increasing incidence of infections. Through our collaborations with St. Jude and NIH, we are working to offer this life-saving therapy to these patients as well.
What We’re Seeing From The Stock
One fo the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Mustang Bio, the news proved to be overwhelmingly positive.
After all, the data suggest that the company and St. Jude are onto something meaningful here. Not to mention, the treatment has the potential to be a highly valuable one, both for the patients and for the company and its investors.
So, it’s not surprising to see that excited investors are sending the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:05), MBIO is trading at $6.82 per share after a gain of $4.16 per share or 156.39% 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 MBIO. In particular, we’re interested in following the story surrounding the company’s continued work with St. Jude to develop MB-107 as the treatment is showing seriously promising early results. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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