Although it’s a small biotechnology business, BioRestorative Therapeutics (NASDAQ:BRTX) is turning heads on Wall Street today. Indeed, BRTX stock is flying high after BioRestorative Therapeutics disclosed a notice of allowance for a patent application from the U.S. Patent and Trademark Office (PTO).
BioRestorative Therapeutics develops therapeutic products, mainly involving adult stem cells. It’s a relatively tiny company with a market capitalization of $15 million to $16 million.
For a business of this size, a single news item can be make-or-break and might send the share price much higher. So, it’s a big deal that the PTO is green-lighting BioRestorative Therapeutics’ patent application for the company’s metabolic ThermoStem program.
BioRestorative Therapeutics describes ThermoStem as a “cell-based therapy candidate to target obesity and metabolic disorders using brown adipose (fat) derived stem cells to generate brown adipose tissue.” Apparently, increasing “brown fat” in the body might actually reduce the risk of obesity.
What’s Happening With BRTX Stock?
BRTX stock catapulted around 40% this morning and threatened to pierce above the $4 level. Clearly, financial traders are pleased with BioRestorative Therapeutics’ announcement of the patent-application allowance.
Indeed, there are potentially positive medical implications here as BioRestorative Therapeutics leverages stem-cell science to treat obesity. However, it’s also worth noting that this will be BioRestorative Therapeutics’ third patent “under this particular family of intellectual property.”
In other words, it’s a significant building block of BioRestorative Therapeutics’ growing intellectual property (IP) portfolio. CEO Lance Alstodt said the patent allowance “is very meaningful as it provides the Company with further protection and strengthens our technology as we develop and expand into the clinic.”
Undoubtedly, BioRestorative Therapeutics’ progress in advancing stem-cell technology is worth noting. Yet, today’s financial traders are probably considering the revenue-generation potential more than the clinical implications. With that in mind, they’re pushing BRTX stock to fresh short-term highs today.
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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.