Hcw Biologics Inc (NASDAQ: HCWB) stock price surged 198.6% premarket after the company was cleared by the US Food & Drug Administration to run a phase 1b human trial of its pancreatic cancer drug.
Investors reacted positively to the news pushing HCWB stock higher as the company prepares to start its first human trials of its HCW9218 drug candidate targeted at treating patients with advanced pancreatic cancer.
While the FDA’s approval of human clinical trials is a significant step forward for the biopharmaceutical company, investors should be aware that most drugs that reach the phase 1 clinical trials fail to proceed to phase II trials.
Therefore, I would be careful about being overly optimistic following today’s development since the drug candidate has to pass the phase 1b, phase II and III trials before reaching the commercial stages.
Hing C. Wong, PhD, HCW Biologics’ Founder and CEO, said: “The FDA’s clearance to proceed with our first-in-human trial for HCW9218 in pancreatic cancer is an important milestone for HCW Biologics and our efforts to advance the development of potentially groundbreaking immunotherapy candidates for cancer and other age-related diseases.”
He further added:
“We have created a bifunctional heterodimeric molecule, HCW9218, that can both stimulate the immune system and block the immunosuppressive activity of transforming growth factor-β. In preclinical studies, we showed that HCW9218 enhanced the anti-tumor efficacy of chemotherapy docetaxel and gemcitabine plus nab-paclitaxel against melanoma and pancreatic cancer, respectively, and simultaneously alleviated the off-target, unwanted effects of chemotherapies on normal tissues.”
Traders who missed out on the latest rally higher should not rush to chase the stock higher since they are likely to get better prices in the future.
Such parabolic rallies are usually followed by significant pullbacks that give investors better entry positions later. HCW shares had retraced some of their gains at publishing.
*This is not investment advice.
Hcw Biologics stock price.
HCW Biologics share price surged 198.63% premarket to trade at $8.72, rising from Wednesday’s closing price of $2.92.
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