Molecular Templates (NASDAQ:MTEM) stock is rocketing higher on Friday after the company got approval from the Food and Drug Administration (FDA).
That FDA approval has to do with its Investigational New Drug (IND) application for the company’s cancer treatment. Specifically, this covers “its novel MT-8421 ETB program targeting CTLA-4 in patients with relapsed/refractory solid tumors previously exposed to checkpoint inhibitors.”
With this approval, Molecular Templates is cleared to move forward with clinical trials of this treatment. The company is ready to do so after getting positive results in pre-clinical studies.
Eric Poma, CEO and CSO of Molecular Templates, said the following in a news release:
“MT-8421 represents a novel approach to target CTLA-4 in a wholly distinct manner from the current monoclonal antibody approaches. MT-8421 was designed to eliminate CTLA-4-expressing Tregs in the tumor microenvironment (“TME”) through a direct cell-kill mechanism independent of the effector cell presence that antibodies rely upon while not effecting Tregs in the periphery, the major mechanism of antibody-mediated autoimmune toxicity.”
How This Affects MTEM Stock
With the ability to move into clinical trials, Molecular Templates is aiming for positive news. If its treatment is safe and effective, it could result in a commercial release. That would be a win for shareholders of MTEM stock as it would open the company up to new revenue.
MTEM stock is experiencing incredibly heavy trading following today’s news. This has some 6 million shares of the stock changing hands as of this writing. That’s already well above its daily average trading volume of about 145,000 shares.
MTEM stock is up 35.7% as of Friday morning.
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On the date of publication, William White 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.