Among the more interesting clinical-stage biopharmaceutical companies for investors to consider is Brooklyn Immunotherapeutics (NYSEAMERICAN:BTX). I won’t claim that everyone needs to own BTX stock, but the upside potential is definitely here.
This company focuses on developing treatments for patients suffering from cancer and rare diseases. To that end, BTX is advancing a lead program known as IRX-2, “a human cell-derived cytokine therapy in Phase 2b development in head and neck cancer.” IRX-2 is highly promising and the program’s final data readout is expected in the first half of 2022.
As we’ll see, Brooklyn Immunotherapeutics is ambitious with its research and development (R&D) efforts in multiple areas — including the frontier science of gene-editing therapy.
BTX Stock at a Glance
Only about a year ago, BTX shares could be purchased for just $2 and some change. If you haven’t owned the stock yet, then it’s unlikely that you’ll get it at such a low price again.
Earlier this year, there were bullish rumblings which should have tipped investors off that a massive rally was about to ensue. By Apr. 1, 2021, BTX stock had already risen to $3.75. This wasn’t the time to take profits, though, as the price action was about to get explosive.
Believe it or not, the stock rocketed to a 52-week high of $80.67 on May 3. Unfortunately, a sharp retracement followed this dizzying rally.
In late May, BTX appeared to have hit a short-term bottom at the $14 level. Thankfully, though, a turnaround looks to be in progress today. The stock recovered to $18.84 on June 3 and now hovers around $15 or so.
If this recovery continues, traders should keep an eye on the $25 and $32.50 levels to see if the rally has legs.
Financing for Progress
As I alluded to earlier, Brooklyn Immunotherapeutics is pursuing industry-leading science on multiple fronts, which could help boost BTX stock.
For one, the IRX-2 program involves a Phase 2b study for the treatment of head and neck cancer. However, the company is also pursuing investigator sponsored trials (IST’s) for renal, liver and gastrointestinal cancers as well as other diseases.
Yet, maybe most importantly, we shouldn’t overlook BTX’s aggressive pursuit of gene-editing technology. After all, this is a potentially lifesaving field of science.
In that vein, the company recently completed a $20 million financing to progress the development of an mRNA (messenger RNA) gene-editing and cell-therapy technology which it licensed from other firms. BTX plans to use these funds to advance “clinical programs with a focus on orphan diseases, such as sickle cell anemia, familial amyloidosis and cell therapies for cancer.”
So, Brooklyn Immunotherapeutics isn’t veering away from its focus on combating cancer and other diseases with this foray into gene editing. Rather, it’s leveraging the power of this frontier science in order to achieve its goals.
Synergistic Potential
The company’s president and CEO, Howard Federoff, has explained how the exclusive license of this gene-editing technology will help advance BTX’s overarching corporate strategy. Federoff noted the following:
“[E]ach progressive step toward the development of new therapeutics from this license brings us one step closer to realizing our vision of becoming a platform company with multiple products in a pipeline of next-generation immunotherapeutics and cellular therapies.”
Moreover, this isn’t the company’s only path to state-of-the-art science. In fact, Brooklyn Immunotherapeutics just established a research and development center in Cambridge, Massachusetts.
Reportedly, this center’s purpose is to pursue mRNA-based gene editing and cellular therapies. Federoff also emphasized that this new research center is intended to provide “ample infrastructure and synergistic potential” to promote the company’s ongoing R&D goals. This could mean great things for BTX stock down the line.
The Takeaway on BTX Stock
Please don’t get the wrong idea here. No doubt, BTX stock can be volatile. It’s advisable to keep your position size small.
That said, it’s worth noting that the share price here has been much higher. So, could a strong bounce be in store?
It’s certainly possible. After all, Brooklyn Immunotherapeutics is pursuing its research objectives relentlessly. This bodes well for both the company and the stock.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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