Longeveron (NASDAQ:LGVN) jumped after publishing a press release stating that Phase 2a results for its Alzheimer’s treatment met primary endpoints.
Lomecel-B is a treatment for mild cases of Alzheimer’s disease. The CLEAR MIND study on 48 patients suggests that the drug slowed progression of the disease.
Longeveron remains a penny stock. After jumping 13% on July 26 and nearly 20% in pre-market trading, its market capitalization was still below $60 million.
Lomecel-B Lifts LGVN Stock
Longeveron was trading near $1 per share before it got a Regenerative Medicine Advanced Therapy (RMAT) designation from the Food and Drug Administration (FDA) earlier this month. The RMAT designation combines elements of the fast track and breakthrough designations. It allows for multiple meetings with the FDA to speed drug development. The news sent Longeveron up 53% in one day.
Lomecel-B is derived from stem cells in human bone marrow. Longeveron is also evaluating it as a treatment for hypoplastic left heart syndrome (HLHS) and ageing-related frailty.
Within the CLEAR MIND study, researchers measure therapeutic potential with the Composite Alzheimer’s Disease Score (CADS). This includes cognitive, functional capacity, and brain MRI measurements. This score, along with other measures of cognitive function, support the idea that Lomecel-B led to slowing progression of the disease in trial participants.
What Happens Next?
Early this year, Longeveron reduced its staff to conserve cash. It had $2.3 million in cash and short-term assets at the end of March.
Expect other drug companies to look closely at acquiring Longeveron, considering its weak cash position. The hype around Lomecel-B will also likely attract some eyeballs.
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On the date of publication, Dana Blankenhorn 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
