The clinical-stage biotech market is as vast as it is complicated. Companies operating in this space are wide-ranging in the illnesses they look to treat. But when they get it right, these stocks can move in a big way. Today, Longeveron (NASDAQ:LGVN) is the biotech stock getting significant attention, as LGVN stock surged more than 120% in today’s session.
In fact, as I’m writing this, LGVN stock has already more than doubled on the day. Indeed, as is the case with most such moves in the biotech sector, investors would be right to assume some sort of key headline around one of the company’s prospective drugs is driving the tape.
And that it is. Let’s examine what the company announced and why shares are moving higher in such impressive fashion.
LGVN Stock Rockets Higher on Positive Update
Today, Longeveron announced the completion of a successful investigator meeting for the ongoing Phase 2 trial of the company’s Lomocel-B treatment for hypoplastic left heart syndrome (HLHS). Essentially, this entails the potential for an existing treatment to see an expanded market in this terrible ailment.
HLHS is often fatal and is the result of an undeveloped or absent left ventricle at birth. Reconstructive surgeries are needed to allow the right ventricle to do all the work, but given the number of surgeries and the risks involved with transplants, anything else that can help will likely be welcomed by the medical community. Longeveron believes its Lomocel-B could improve patient outcomes and right ventricular function in infants.
This is certainly an important issue. While, thankfully, only around 1,000 babies are born with this defect each year, the global market for drugs that can aid in the recovery and proper functioning of these little hearts will be very appreciated by all. We’ll have to see more details in coming clinical trials, but for now, the updates appear to be positive on this front.
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On the date of publication, Chris MacDonald 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.
