Novan (NASDAQ:NOVN) stock is soaring today off of some big news. It appears that the company has promising clinical trial results around a common — and quite contagious — skin infection. Novan is sharing the news around the lengthy trial period, and holders of the biopharma play are seeing 75% gains. So what do you need to know now?
Novan is a Durham, North Carolina-headquartered company that develops products to treat dermatological, women’s health, and gastrointestinal issues. It develops therapies using nitric oxide, a gas the body naturally produces. The company has a market capitalization of just $240 million.
And while it posted widening losses in Q1 2021, Novan believes it has enough cash to carry it through next year.
NOVN Stocks Sees Massive Upswing
The good news comes today for the company in the form of a clinical trial update, which investors have long been anticipating. Novan reported a positive efficacy for its SB206 dermatological treatment. The company is testing the topical gel product for its ability to treat molluscum. For those unfamiliar, molluscum is a common and contagious skin infection which characterizes itself with clusters of small warts on the skin. It typically affects children.
Results of the study are proving the efficacy of the topical treatment in speeding along the process of clearing skin lesions. The double-blind study saw one-third of patients reach the primary endpoint of complete skin clearance by week No. 12 of treatment. Almost one-fifth of patients saw complete clearance as soon as week No. 8 of treatment.
The news is wonderful for those who suffer from the condition, and it’s also a moment of celebration for stockholders. Today is seeing over 100 million shares of NOVN changing hands, up from its average of 644,000. NOVN stock is also up 76% this morning, currently resting at $15.90.
On the date of publication, Brenden Rearick 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.