A restorative hair treatment helped restore the value of Nektar Therapeutics (NKTR +18.25%) on Monday. The company reported very promising results from a clinical trial of a drug targeting a hair-loss disorder, generating significant heat for its stock. The biotech‘s shares thundered more than 18% higher that day as a result.
Growing optimism
Before market open, Nektar — still a clinical-stage company — published results from a phase 2b study of its rezpegaldesleukin in patients with severe to very severe alopecia areata. The trial found that patients who had already responded to the treatment grew more hair over time.
Image source: Getty Images.
With that, optimism returned in a big way to rezpegaldesleukin’s future. Last year, Nektar disappointed with news that the drug failed to demonstrate a statistically significant benefit in a 36-week treatment cycle. However, the company said it found that four patients dosed with the medication were not eligible for treatment. This latest trial did not include those individuals, and lasted 52 weeks.
Nektar, which specializes in developing immunology treatments such as rezpegaldesleukin, said it would advance the drug into later-stage trials.
Today’s Change
(18.25%) $15.49
Current Price
$100.35
Key Data Points
Market Cap
$2.4B
Day’s Range
$95.40 – $109.00
52wk Range
$7.99 – $109.00
Volume
4.9M
Avg Vol
1.1M
Gross Margin
98.14%
Major potential
This is quite a change of fortune for rezpegaldesleukin and, by extension, its developer. Alopecia areata is a common autoimmune disorder affecting millions of people in the U.S. alone, and what’s more, Nektar is using its innovative science to treat it. This drug has significant potential, then, so in my view investors were right to be very bullish on the biotech Monday.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.