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Shares of little-known Corbus Pharmaceuticals (NASDAQ:CRBP) are absolutely skyrocketing today. At the time of writing, CRBP stock is up more than 300%, as investors price in a key announcement from the company.
Earlier today, Corbus announced that its next-generation antibody drug (CRB-701) showed strong safety and efficacy in a first-in-human study on its effects on cervical cancer tumors. This drug conjugate is one of three key drugs that are currently in clinical trial phases but has clearly moved up the pipeline in terms of expectations of approval, given these results.
Let’s dive into what Corbus announced and why the stock is taking off in the fashion it is today.
Why Is CRBP Stock Surging Today?
For clinical-stage biotech companies, results matter. Clinical trials test the efficacy and safety of various drugs, with investors basing their expectations of Food and Drug Administration (FDA) approval on such results. Thus, today’s news that no serious safety events were recorded and this drug performed well from an efficacy standpoint bodes well for those who have stuck with this stock through difficult times.
Indeed, the long-term stock chart for Corbus isn’t pretty. While this stock did surge right around the peak era of pandemic-driven optimism, investors have largely moved on from this name. Thus, these results came at a great time for Corbus, as the company looks to regain its status as a high-potential biotech player.
Additionally, with M&A activity picking up in this sector, a viable drug candidate could considerably boost Corbus’s valuation. Today’s move has certainly priced in a significant amount of enthusiasm over CRB-701, and while more trials will need to be done, it’s clear this is a biotech company with some strong momentum.
Following these results, Corbus’ CEO noted that CRB-701 appears to be superior to other options in its ability to treat cervical cancer tumors, suggesting meaningful benefits for patients (and the company) could be in store. This is a story the market has latched onto, and I have no doubt CRBP stock will be one to watch in the months to come.
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.