Today’s market is downright nasty. At one point this morning, there were zero Dow components trading in the green. Accordingly, looking at winners such as Cogent Biosciences (NASDAQ:COGT) and COGT stock can be a therapeutic exercise.
That’s not only because Cogent is a therapeutics company. This company’s focus is on providing precision therapies aimed at various genetic disorders. As it happens, one of the company’s key potential drugs, its KIT D816V inhibitor bezuclastinib, showed promising initial results from a Phase 2 APEX clinical trial.
Given this company’s status as a clinical-stage biotech company, solid results of any type are going to be viewed positively by the market. Judging by the huge upside move in COGT stock today, that’s clearly the case. However, there were some important details from this study investors appear to like.
Let’s dive into what the company announced, and why this stock is rocketing higher today.
Why Is COGT Stock Soaring Today?
Indeed, given this morning’s rather bearish CPI print showing 8.6% inflation (the highest since 1981), investors may be surprised to see any companies, let alone speculative high-growth biotech stocks, in the green today. That said, Cogent’s recent preliminary data from its Phase 2 trial of this drug are notable.
The company reported a 50% reduction in serum tryptase in patients suffering from advanced systemic mastocytosis (AdvSM), a debilitating hematological disorder. There currently is not a truly effective therapeutic for AdvSM, and it could be a big market should the company’s KIT D816V inhibitor work.
In addition to serum tryptase reductions, all patients also saw a more than 50% reduction in bone marrow mast cells as well as decreases in blood variant allele fraction.
That’s a lot of biotech lingo, and there’s more in the release. However, the bottom line is this drug is showing its potential to be an effective option for patients with this debilitating disorder. For investors in COGT stock who are well aware of the science behind what Cogent is trying to do, clearly there’s a bid for these shares today. This is a stock I’ve added to the watch list on 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.