What caused Baudax Bio (NASDAQ:BXRX) stock to double earlier today? The catalyst was undoubtedly this morning’s announcement concerning a Phase 2 clinical trial of Baudax Bio’s novel product, BX1000. The results so far only concern a small cohort of patients. However, it appears Baudax Bio is ready to expand the study, as the results were positive.
Baudax Bio is a small biotechnology company. Its primary products are two neuromuscular blocking (NMB) agents. These are BX1000 (intermediate duration, in a Phase 2 trial) and BX2000 (ultra-short duration, in a Phase 1 trial).
Interestingly, Baudax Bio also has a chemical agent called BX3000 which reverses the effects of BX1000. Why would the company have one agent that induces muscular blockade and another agent that reverses this effect?
Baudax Bio explains, “We believe these agents allow for a very rapid induction of neuromuscular blockade for surgical settings, followed by a rapid reversal of the neuromuscular blockade.” The idea is to reduce “time in operating rooms or post-acute care settings” and thereby provide potential time and/or cost savings.
Today’s announcement is a positive result for the first Phase 2 trial interim analysis of BX1000 for NMB in patients undergoing elective surgery. Out of 20 observed patients, all 20 “met the criteria for Good or Excellent intubating conditions at 60 seconds.”
What’s Happening with BXRX Stock?
Now, a casual observer might think an observation of 20 patients isn’t a huge deal. Plus, Baudax Bio’s announcement primarily concerned intubating patients with BX1000. The press release didn’t claim success in any surgical procedures with BX1000.
Nevertheless, BXRX stock rallied 100% soon after the opening bell rang on Wall Street. Then it pulled back to 90% and continued to decline, but was still up significantly an hour into the trading session.
Perhaps today’s financial traders are looking ahead to the future of BX1000. Baudax Bio President and CEO Gerri Henwood explained, “BX1000, combined with our reversal agent, BX3000, could make for precise control of timing under neuromuscular paralysis for surgical patients.”
Moreover, the 20-patient study is just a starting point. For the study of BX1000, Henwood expects enrollment to be completed during the current quarter. Then, top-line results for the study could be released in April of this year.
It’s hard to say exactly where BXRX stock will end up today. Given the excitement surrounding BX1000 and Baudax Bio, however, it’s safe to say the buyers are firmly in control.
On the date of publication, David Moadel 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.