Creative Medical (NASDAQ:CELZ) stock is rocketing higher on Wednesday thanks to clearance for a new clinical trial.
That clearance comes from the U.S. Food and Drug Administration (FDA) and covers the CELZ-201 cell therapy. This is a treatment in development by the company for Type 1 Diabetes. The FDA approval allows Creative Medical to launch a Phase 1/2 clinical trial of the treatment.
Creative Medical notes that its plans with these clinical trials are evaluating CELZ-201 as a treatment for patients with newly diagnosed Type 1 Diabetes. The trial will take place at the University of Miami Health System with the help of the Diabetes Research Institute.
Dr. Camillo Ricordi, the principal investigator of the clinical trial, said the following about the news:
“I am excited to proceed with the CELZ-201 perinatal cell product in this study, as I believe that if successful it could result in a promising treatment for many patients with Type 1 Diabetes.”
What This Means for CELZ Stock
Creative Medical launching new clinical trials is good news for CELZ stock. It opens the company up to potential future profits, if the results from the studies are positive. That could also turn into gains for investors holding CELZ shares.
It looks like investors are betting on that today, with extreme buying boosting CELZ stock higher. As of this writing, more than 77 million shares have changed hands. That’s a massive surge compared to its daily average trading volume of about 188,000 shares.
CELZ stock is up 120.8% as of Wednesday morning.
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On the date of publication, William White 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.
