Enlivening a soft Monday session on Wall Street, TransCode Therapeutics (NASDAQ:RNAZ) saw its shares drive up 300% earlier this morning before settling around 240% up in the early afternoon session. Catapulting sentiment was news that TransCode’s lead therapeutic candidate, TTX-MC138, demonstrated encouraging pre-clinical results. Even better, the few analysts that cover RNAZ stock are extremely optimistic about its upside prospect.
According to the company’s press release, TransCode treated mice implanted with tumors derived from human glioblastoma multiforme (GBM) patients with TTX-MC138. Specifically, bioengineers delivered the therapeutic candidate directly to brain tumors. Following the delivery, researchers used magnetic resonance imaging (MRI) to determine if the treatment reached the tumors.
Notably, this examination revealed that TTX-MC138 inhibited a cancer-causing RNA called miRNA-10b, which is a known driver of GBM progression. Naturally, the research team believes the results support the lead candidate’s potential as a significant cancer treatment.
Moving forward, TransCode will conduct its first-in-human clinical trail with TTX-MC138, which is open for enrollment. While the trial could yield important data regarding the therapeutic candidate, it’s not intended to evaluate efficacy.
RNAZ Stock Drives Higher on Positive Brain Cancer Treatment Implications
Fundamentally, RNAZ stock jumped significantly higher on Monday due to the positive implications for brain cancers. In particular, GBM represents a severe form of the diseases. Per TransCode, GBM imposes a poor survival rate that hasn’t improved in the last three decades. Therefore, a pressing need exists for superior treatments.
According to the National Brain Tumor Society, more than 14,490 Americans are expected to receive a GBM diagnosis this year. Further, GBM accounts for just over half of all primary malignant brain tumors. Sadly, experts project that more than 10,000 individuals in the U.S. will succumb to the condition every year. Thus, in many ways, RNAZ stock represents a possible lifeline.
Even more worrying on a human level, a study published in the National Library of Medicine website notes that GBM incidents have been on the rise in many countries. While several factors exist regarding this rise, the increase nevertheless undergirds the importance of effective treatments. Potentially, TransCode can carve out a critical niche, thus explaining the lift in RNAZ stock.
Why It Matters
While only two analysts cover RNAZ stock according to TipRanks, they are incredibly bullish on its prospects. Both experts forecast shares hitting $12, translating to over 400% upside, even with today’s massive spike higher.
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On the date of publication, Josh Enomoto 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.