Today, investors in Sesen Bio (NASDAQ:SESN) are up big. Indeed, shares of SESN stock gained more than 22% today on a very green day for biotech stocks.
This maker of treatments for a specific type of bladder cancer has seen a tremendous amount of interest build in recent months. In fact, since the beginning of the year, SESN stock has been a five-bagger for investors who have held steady in this stock. Today’s move is simply a continuation of a longer-term upward trend for SESN stock.
This excitement around Sesen’s business model is understandable. The company’s mission to save and improve the lives of its patients is noteworthy. Indeed, investors seeking a company with an altruistic goal to latch onto have a good company to consider in Sesen.
This late-stage biotech is focusing on developing fusion protein medicines. Vicineum is one such treatment that the company is currently working on. This treatment is for patients suffering from non-muscle invasive bladder cancer.
Today, investors are pricing in some bullish expectations around the Phase 3 trial for this treatment. Let’s dive into the details a bit more.
SESN Stock Rising on Positive Outlook for FDA Decision
Today, Sesen announced the company is on track for a Food and Drug Administration (FDA) decision for its Vicineum treatment by Aug. 18. Having a concrete date in mind is a great thing. Given how near-dated this catalyst is, investors seem to want to gain as much exposure to this company as possible before the announcement.
Overwhelmingly, it appears there are a number of reasons to be bullish on this FDA decision. The company remains steadfast in its belief that its Vicineum treatment will receive approval. And investors appear to agree with this outlook, given the positive initial data that has been shared.
Indeed, should this company receive FDA approval, there’s a good chance Sesen’s $1 billion market cap may be re-evaluated by the market to the upside. However, as with any FDA decision, downside risks remain. Investors should factor these risks into their models when considering stocks like SESN that have run-up into such announcements.
For now, it appears the outlook remains bright for Sesen. I expect to see continued buying into the Aug. 18 announcement. However, this will definitely need to be a date investors mark on their calendars, as I expect significant volatility around this news.
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.
