Gene editing stocks are the talk of Wall Street today as a number of biotech titans enjoy strong gains. It seems a breakthrough clinical trial from Alnylam Pharmaceuticals (NASDAQ:ALNY) has lifted the entire industry.
This morning, Alnylam announced the success of one of its 12-month trials of its RNAi therapy, Patisiran. The phase 3 Apollo-B study was successful in treating patients with transthyretin-mediated (ATTR) amyloidosis with cardiomyopathy. ATTR amyloidosis with cardiomyopathy is an uncommon disease that restricts the ability of the heart to pump blood. The trial reached Alnylam’s targeted change in baseline in the 6-minute walk test after 12 months compared to placebo.
Since the announcement, investors have been downright clamoring over ALNY stock. ALNY was trending up over 50% in pre-market trading and carried over the momentum, ending the day in the green about 49%. It closed at $212 per share, close to the new all-time high it reached earlier today.
For investors, Alnylam’s successful trials paints a rosy picture for future revenue generation. The company could enjoy strong sales from Patisiran, and even prop Alnylam itself up for a potentially lucrative buyout.
Not alone, however, Alnylam’s good news has dispersed over the entire industry today.
Gene Editing Stocks Climb Across the Board
Alnylam’s clinical-trial breakthrough has pushed other gene editing stocks up today as well. Beam Therapeutics (NASDAQ:BEAM) and Crispr Therapeutics (NASDAQ:CRSP) ended the day up about 6.5% and 3% respectively. Meanwhile, Intellia Therapeutics (NASDAQ:NTLA) is enjoying a 12% boost on the back of Alnylam’s discovery.
Gene editing companies have been in an odd place this year. While generally avoiding pullback other centric companies have felt, their high-growth nature hasn’t left them devoid of investor uncertainty.
Indeed, from its previous peak of $208 per share, ALNY stock had slipped to $141 before today’s boom. Despite the cold streak, some institutional investors, like Cathie Wood, have stood by the gene therapy industry. Wood has repeatedly gone on gene therapy buying streaks, even as her flagship exchange-traded fund, ARK Innovation ETF (NYSEARCA:ARKK), continues to deteriorate.
Today’s news should come as a positive sign for Alnylam, gene therapy and certainly fans of Cathie Wood.
On the date of publication, Shrey Dua 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.