Shares of drug discovery specialist SciSparc (NASDAQ:SPRC) are popping sharply today on encouraging clinical study results. Specifically, the company’s joint venture (JV) project MitoCareX Bio achieved positive results regarding small-molecule screening processes. This represented the passing of a second milestone in late November, triggering additional investment by SciSparc. Subsequently, SPRC stock is soaring on the promising implications.
According to a press release, SciSparc — which is a specialty clinical-stage pharmaceutical company focused on the “development of therapies to treat disorders and rare diseases of the central nervous system” — announced on Nov. 27 that MitoCareX Bio achieved its second milestone pursuant to the underlying JV agreement. MitoCareX focuses on the discovery and development of drugs for cancer treatment.
Specifically, researchers under the JV conduct studies targeting the “nuclear encoded human mitochondrial carriers.” Per the press release, this is the “largest solute transporter family in humans” and plays a crucial role in how cells function. Moreover, these carriers are found in different types of cancers, with diseases often leaving them in altered states.
What has particularly driven intrigue in SPRC stock is that MitoCareX has developed special laboratory processes to test potential anti-cancer drugs in cells. Essentially, the technology helps researchers to only focus on the most promising cancer therapeutics.
SPRC Stock Enjoys a Massive Total Addressable Market
Per the aforementioned agreement, reaching this second milestone triggers the condition that SciSparc will invest an additional $600,000 into the JV within 30 days of the date that the milestone was achieved. After this investment, SciSparc will hold 50.1% of the issued and outstanding share capital of MitoCareX. For investors of SPRC stock, they largely view this as money well spent.
On a human level, one explanatory paper published in the Principles of Clinical Pharmacology states that a key goal for drug discovery campaigns centers on the “recognition of new molecular entities that may be of value in the treatment of diseases that qualify as presenting unmet medical needs.” Because many such diseases are potentially life-threatening, this advanced field presents a possible lifeline.
In terms of numbers, the global drug discovery outsourcing industry is already massive, reaching a valuation of $3.5 billion last year. Further, experts project that the sector will expand at a compound annual growth rate (CAGR) of 7.3% from 2023 to 2030. At the culmination of that forecast period, the sector should post annual revenue of $6.2 billion.
Specific to SPRC stock, the underlying company could unlock significant value by focusing the biotech industry on truly compelling initiatives. According to a 2015 Vox article, about $200 billion — or roughly 85% of global spending on research at the time — is “routinely wasted” on badly designed and redundant studies.
Why It Matters
Although SPRC stock may appear enticing to some investors based on the latest developments, no analyst covers the underlying enterprise on TipRanks. That may be because of its extremely speculative nature. Currently, the company carries a market capitalization of only about $3 million.
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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.
