Some massive winners in the world of biotech companies continue to emerge today. 4D Molecular Therapeutics (NASDAQ:FDMT) is the latest company to generate massive attention from investors, with FDMT stock rocketing over 80% higher in early afternoon trading.
This move comes as the company announced positive interim data from a key Phase 2 clinical trial of its eye disease therapy, 4D-150. These clinical trials were carried out in “wet age-related macular degeneration (wet AMD) patients with severe disease activity and a high treatment burden.”
The company noted that its eye disease therapy showed promising safety and efficacy in its trials and thus may be on track to receiving potential approval down the line.
Of course, additional trials will be required before investors can get ahead of themselves. But today’s overwhelmingly positive data suggest this company could have a much bigger future runway than initially thought.
Let’s dive into what 4D Molecular Therapeutics reported today and why this stock has surged so aggressively.
Why Is FDMT Stock Up 80% Today?
It’s clear that market participants like the announced results presented by 4D Molecular today. However, analysts are also jumping on board, with RBC Capital Markets analyst Lisa Walter suggesting the data “checks all the boxes.”
4D Molecular’s key eye disease treatment could impact the more than 19 million Americans living with age-related macular degeneration. Thus, this is a big target market for the drug. And given its efficacy (89% reduction in standard-of-care injections), there’s a lot to like about its long-term potential. Additionally, it should be noted that nearly two-thirds of patients on this treatment were injection-free over a span of 24 weeks.
Walter also pointed out that she sees 4D molecular as “the most viable player” in the world of gene therapy. That’s a resounding vote of confidence for the company, which surpassed the $1 billion market capitalization level for the first time in years on this news.
Now, there are competing drugs on the market, and approval is far from assured. Accordingly, there’s a significant amount of risk investors take by investing in FDMT stock after today’s rise. That said, given this stock’s potential as a leader in the gene therapy space, I expect to see more about this company in the coming weeks. For now, it’s a hot stock to put on the watchlist, that’s for sure.
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.
