Today, investors in Scopus Biopharma (NASDAQ:SCPS) and SCPS stock are seeing incredible gains. This stock has moved more than 115% higher at the time of writing on extremely heavy volume.
And for good reason.
Today, Scopus broke through with some ground-breaking news investors have been waiting for with this stock. It appears the growth hopes many investors had with this stock have been justified by this news. And as with other early stage biopharma companies, investors know that such stocks tend to be longshots.
Scopus Biopharma is a company focused on developing transformational therapeutics aimed at various cancers. This oncology-focused biopharma play has been on an otherwise steady decline in recent months. Today’s move brings this stock roughly back to the level it was trading at earlier this year.
Let’s dive into the big reason for today’s jump.
SCPS Stock Is Soaring on FDA Approval
Today, Scopus announced the U.S. Food and Drug Administration’s approval for the company’s investigational new drug application (IND) for CpG-STAT3siRNA, its core immuno-oncology RNA therapy. This therapy is targeted at multiple cancers, with what appears to be a substantial target market.
Accordingly, investors are jumping aboard SCPS stock in a big way today.
The company plans to begin a Phase 1 clinical trial for B-cell non-Hodgkin lymphoma shortly. Scopus is partnering with City of Hope, a world-renowned independent research organization, to carry out this study. The hope is that the data will ultimately highlight the efficacy needed to gain approval.
As with other early stage biopharma plays, Scopus remains a high-risk, high-reward play. Indeed, investors should remember to practice proper portfolio discipline in sizing such positions. The upside with this stock could indeed be massive. However, given the fact trials are likely to take months, investors will need to be patient with this speculative play.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.