The stock that jumps over 200% following a successful experiment

Positive results from clinical trials give a significant boost to the stocks of biotech companies, here is a particularly big one.

The stock of the biotech company Sana Biotechnology It soared last night (Wednesday) with a trading turnover of 60 times the average turnover of about 160% and its market value increased during trading by over half a billion dollars to 1.1 billion dollars, and finally closed around 960 million dollars. The jump follows the company’s announcement before the opening of trading today that its main islet cell treatment, UP421, was successfully transplanted into a type 1 diabetic patient. Islet cells play an important role in the production of insulin in the pancreas, and the allogeneic treatment (use of cells from another donor) aims to restore the ability the body to produce insulin naturally. With the opening of trading, the stock jumped by 333% and traded at a price of 7.2 dollars per share.

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The company stated that the beta cells of the patient’s pancreas survived and functioned even four weeks after the transplant. In addition, although no immunosuppressive methods were used, Sana, founded six years ago in Seattle, reported that the transplanted islet cells “avoided the immune system’s response.” This is a revolutionary technology capable of turning type 1 diabetes, a chronic disease that requires daily insulin injections, into one that can be fully cured without the need for additional drugs.

“The clinical data provide the first evidence in humans of overcoming allogeneic and autoimmune rejection in pancreatic islet cell transplantation for type 1 diabetes without immunosuppression,” said Dr. Per-Ola Karlsson, the study’s principal investigator, senior physician and professor at the Department of Endocrinology and Diabetes at Uppsala University Hospital , who is Sana’s research partner.

“In type 1 diabetes, the human immune system attacks and destroys the beta cells. Today’s data, combined with progress elsewhere in the field, provides real hope that a curative, sustainable and scalable treatment for type 1 diabetes patients is possible,” added D Dr. Carlson. Sana plans to launch independent research to develop an allogeneic islet cell therapy that she is developing in her labs.

Bank of America sees upside of 40%

It is amazing that only three weeks ago and after a challenging year for biotechnology companies, the company’s stock was at a 52-week low, touching the level of $1.54 after a drop of about 60% and a market value of only $353 million. The company even experienced several changes in management when the chief financial officer, Nathan Hardy, retired while Dr. Deval Patel was appointed as senior vice president and new chief scientist.

Meanwhile, Bank of America today lowered the target price for Sana shares from $8 to $7, but maintained a “buy” rating for the stock. Now its price is about 5 dollars. While political uncertainty and interest rates continue to be an inhibiting factor, the company sees the state of the biopharma sector as “significantly improving since the 2022 low.”