Today, shares of Creative Medical Technology (NASDAQ:CELZ) stock are flying higher by more than 70% on news of the company’s StemSpine procedure. Creative Medical Technology is a biotech company working toward a “regenerative approach to immunotherapy, urology, neurology, and orthopedics.”
Why exactly are shares of CELZ stock trading higher today? Here’s what investors should know.
Why Is CELZ Stock Up Today?
Today, Creative Medical announced positive data concerning its two-year follow-up study of StemSpine. StemSpine is the company’s patented procedure that “utilizes a patient’s own bone marrow aspirate for the treatment of chronic lower back pain.” Specifically, StemSpine can be used to treat degenerative disc disease (DDD), which causes lower back pain. The recent study showed that the procedure resulted in an 87% efficacy rate. Additionally, patients in the study did not report any serious adverse health effects. CEO Timothy Warbington was pleased with the results:
“To our knowledge, this pilot is the first demonstration of the clinical efficacy of injecting bone marrow aspirate in areas surrounding the disc, thereby repairing, remodeling and improving the blood supply around the disc and lower back area. We believe StemSpine® represents an attractive non-surgical option for many of the millions of Americans who suffer from non-surgical chronic lower back pain.”
Looking forward, Creative Medical plans on submitting a paper on its results to a peer-reviewed publication. The company will also present its findings at the American Academy of Orthopedic Surgeons annual conference. The conference has already begun to take place, scheduled from March 22 to March 26.
How Does StemSpine Work?
On its website, Creative Medical says roughly 30% of people show some signs of disc degeneration by age 35. To remedy this, StemSpine first uses an U.S. Food and Drug Administration (FDA) approved device to extract a patient’s own stem cells.
Stem cells “stimulate production of new blood vessels.” So, in the company’s procedure, extracted stem cells are administered into back muscles surrounding a patient’s area of pain. The cells then work to create new blood vessels. These vessels “increase circulation” around the disc in question and encourage regeneration.
Moving forward, investors should watch CELZ stock closely as the new positive results keep shares climbing today.
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On the date of publication, Eddie Pan did not hold (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.