Today’s price action (prior to the Federal Reserve’s rate hike decision at least) has been broadly positive. But for investors in Evaxion Biotech (NASDAQ:EVAX), it’s been a heck of a day. Previously up more than 70% at today’s peak, EVAX stock is still up approximately 35% at the time of writing.
Some very bullish news around the company’s EVX-01 personalized cancer therapy has driven this move. The company has announced that it has enrolled its first patient in a global phase 2b clinical trial of the cancer therapy for melanoma. This news has been met with increasingly bullish sentiment by investors, who now look forward to the company’s next approval stages.
Notably, this trial is being conducted in a number of key markets, providing for a larger potential market than many may have previously thought. The trial will take place at various sites in North America, Europe and Australia. Interestingly, in Australia, Merck (NYSE:MRK) has stepped up to collaborate on this trial, with the inclusion of its blockbuster drug Keytruda.
There’s a lot to dive into with this announcement, so let’s take a look at what investors may want to make of this news.
EVAX Stock Soars on News of Clinical Trial Enrollment
This announcement is certainly a bullish one for investors considering this clinical-stage biotech stock. Indeed, at these early stages of drug development, trial milestones and approval timelines are of the utmost importance. For Evaxion, today’s news pushes up the forecasted window for approval, improving this company’s valuation.
Of course, a number of macro factors which are at play today could hamper this rally. The Fed is set to release its update on interest rates in minutes. Accordingly, we’ll have to see if this rally can hold.
That said, the company-specific news Evaxion announced today is likely worth the bump. For speculators and traders seeking momentum trades in this choppy market, this is a stock to watch from here. Personally, I’ve put EVAX stock on the watchlist following 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.