On an otherwise bearish day in the markets, many investors may be looking for some good news. For those on such a search, taking a look at some of the big movers in the biotech sector is a great place to start. Today’s move in Windtree Therapeutics (NASDAQ:WINT) is certainly among the most impressive, with WINT stock surging nearly 190% higher at the time of writing on a key announcement.
The biotech company announced that its dual mechanism SERCA2a Activator class of drugs has been granted a patent by the European Patent Office. This patent will expire July 2038, giving the company ample room to develop and fully commercialize this late-stage development candidate.
It’s important to keep today’s move in context. Over the past month, WINT stock has generally traded in the $4-$5 per share range. However, today’s incredible move saw the stock make a high of $18.48 per share. That’s good for a 326% gain for those who held since yesterday’s close and sold at today’s peak.
Of course, no one actually did that. It’s impossible to time the top exactly. But catching fast-moving stocks like Windtree with impressive moves is what many speculators are after. Now, the question is whether this stock can resume its upward trajectory.
Let’s dive into this news and what to make of today’s move in WINT stock.
WINT Stock Surges on Patent News
For biotech companies looking to corner a specific market, patents are an important piece of the puzzle. Having patent protection for a drug, or in this case a class of drugs, is a big deal. It allows such companies the ability to carefully capture market share and commercialize a given drug, for which a company may have spent a significant amount of capital developing.
In the case of Windtree, the company’s late-stage treatment for acute decompensated heart failure and cardiogenic shock requires multiple compounds with a dual mechanism of action. Thus, having patent protection for these key drugs is clearly being viewed as a big win for the company in its race for market share in Europe.
How well these drugs perform in European hospitals could portend well for the company’s potential ambitions elsewhere. Thus, it’s clear this is a positive first step toward some impressive profit potential — something biotech investors hope for with such bets.
On the date of publication, Chris MacDonald 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.
