There’s potentially positive news for the medical community as well as investors of Chemomab (NASDAQ:CMMB) today. CMMB stock is moving higher because Chemomab has good news on the regulatory front, plus the company expects to move forward with important clinical research.
Based in Israel, Chemomab is a clinical-stage biotechnology company that develops therapeutics for fibro-inflammatory diseases. Among the diseases targeted by Chemomab is systemic sclerosis (SSc), a rare autoimmune rheumatic disease. “It is considered the most lethal of the systemic rheumatic diseases with a median survival of only 10 years,” according to Chemomab.
Not only that, but there’s reportedly no approved disease-modifying drug for systemic sclerosis. So, it’s notable the U.S. Food and Drug Administration (FDA) has cleared Chemomab’s Investigational New Drug (IND) Application to study CM-101 in a Phase 2 trial in adults with SSc.
Previously, CM-101 was shown to reduce “inflammatory and fibrotic injury to the lung, skin and vasculature.” These organ systems are, Chemomab states, frequently affected in patients with SSc.
What’s Happening With CMMB Stock?
CMMB stock jumped as financial traders assessed the announcement of the regulatory clearance for CM-101. Chemomab shares ran as much as 30% higher in early-session trading today before retracing somewhat.
This magnitude of price action isn’t entirely unusual for a stock representing a relatively small biotech business. Indeed, FDA clearance or rejection of a drug can be make-or-break for a company like Chemomab.
In this instance, it’s more “make” than “break” for Chemomab. The company can now take the next step with CM-101 in potentially treating some adults with SSc. Chief Medical Officer Matt Frankel announced Chemomab looks forward to “initiating patient enrollment in the first half of this year.”
Clearly, some CMMB stock investors aren’t waiting for Chemomab to start enrolling patients. Instead, they’re buying CMMB stock today in anticipation of the progress Chemomab could make in addressing a very unfortunate disease.
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.
