Ocean Biomedical (NASDAQ:OCEA) stock skyrocketed on Tuesday on the announcement of a potentially groundbreaking development. Specifically, Ocean’s scientific co-founder Dr. Jack Elias received a broad patent regarding his cancer immunotherapy treatment. At one point, OCEA stock popped more than 100% as a result, although it gave up much of those gains in the late afternoon hours. Shares closed the day up by 28%.
According to an accompanying press release, the new patent applies to Elias’ discovery related to reversing immune system suppression. Specifically, the process involves “binding chitinase 3-like-1 (CHi3L1) polypeptides with Ocean Biomedical’s proprietary immunoglobulin antibody.” Prior research demonstrates that this process suppresses primary and metastatic tumor growth “in multiple animal models and has potential use in multiple forms of visceral cancers.”
Notably, the patent covers a variety of cancers, including prostate, colon, breast and lung cancer, melanoma and others. Further, the press release states that Ocean’s monoclonal antibody represents “one component of a unique oncology platform that is building multiple approaches to activating natural anticancer immune responses by suppressing CHi3L1, with potential for broad application.”
Elias said the following about the development in the press release:
“This pathway discovery is an unprecedented leap forward, because if you control CHi3L1, you don’t just control one anti-cancer pathway, you simultaneously control many anti-cancer pathways […] We are making discoveries that we believe will drive cancer research, and eventually treatment and patient outcomes, forward.”
OCEA Stock Targets a Massive Addressable Market
Logically, the major implication for OCEA stock here centers on its potential commercial viability. According to Grand View Research, the global cancer immunotherapy market reached a valuation of just over $115 billion last year. Experts project that the segment will expand at a compound annual growth rate (CAGR) of 8.7% from 2023 to 2030 as well. By 2030, sector revenue is expected to hit $224.3 billion.
A pressing need is also catalyzing OCEA stock and its peers. Per the Global Cancer Observatory, as cited by Grand View, the U.S. reported around 2.28 million cancer cases in 2020 and 612,390 cancer-related deaths. Further, the most common cancers impacting the U.S. are breast, prostate, lung and colorectal. Therefore, Ocean’s new patent has strong underlying relevancies.
Research involving CHi3L1 also carries significant health implications. According to a paper published by scientific journal Nature, CHi3L1 is synthesized and secreted by a multitude of cells, “plays a major role in tissue injury, inflammation, tissue repair, and remodeling responses” and has been “strongly associated with diseases including asthma, arthritis, sepsis, diabetes, liver fibrosis, and coronary artery disease.” Thus, discoveries related to CHi3L1 could lead to breakthroughs in other areas besides oncology. It’s no surprise, then, that retail investors have bid up OCEA stock today.
Why It Matters
Although a largely speculative name, the two Wall Street analysts that cover OCEA stock on TipRanks give shares a “buy” rating. Further, their average price target clocks in at $16.70, representing upside of nearly 150%. Therefore, speculators may still see more room to run here.
On the date of publication, Josh Enomoto 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.