Moleculin Biotech (NASDAQ:MBRX) is seeing shares of MBRX stock soaring higher on Tuesday after announcing news concerning one of its drug candidates.
The drug candidate behind the positive Moleculin Biotech news is WP1066. This is the company’s candidate that it’s developing for treating brain tumors, pancreatic cancer, and hematologic malignancies.
According to the company, the U.S. Food and Drug Administration has approved its request for the Rare Pediatric Disease designation for WP1066. This grants the company a transferrable Priority Review Voucher for the drug upon filing a New Drug Approval.
Moleculin Biotech notes that this Priority Review Voucher covers three indications. They are diffuse intrinsic pontine glioma, medulloblastoma, and atypical teratoid rhabdoid tumor.
So, why exactly is this such a good thing for MBRX stock? As the company points out, these Priority Review Vouchers are valuable items. Moleculin Biotech is able to sell them to other companies. It points out that these types of vouchers have sold for $100 million or more.
Walter Klemp, chairman and CEO of Moleculin Biotech, said the following about the news boosting MBRX stock higher today.
“The early activity we are seeing in WP1066 is both unexpected and encouraging. The approval of these three Rare Pediatric Disease designations is a reminder of just how important our efforts are to potentially help children with brain tumors.”
MBRX stock is experiencing heavy trading following the news. As of this writing, more than 45 million shares have traded. That’s an impressive boost from its daily average trading volume of about 503,000 shares.
MBRX stock was up 21.8% as of noon Tuesday.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.