Monopar Therapeutics unveiled promising results Monday from three studies of its neurological disease treatment, leading the top 1% biotech stock to break out of a cup base.
The company is working on a drug called ALXN1840 for patients with Wilson disease, a genetic condition that affects the body's ability to regulate copper levels. This can cause neurological, liver, kidney and eye problems, as well as joint pain and bone fractures.
ALXN1840 showed a sustained neurological benefit for over six years and a median of 2.6 years. Patients and their doctors reported improvements in symptoms. Further, patients who started with standard drugs and then received ALXN1840 also experienced neurological improvement.
"We see long-term neurological data continuing to support ALXN1840's ability to address limitations to the current (standards of care), which include neurological, psychiatric and liver damage in >50% of Wilson disease patients," Oppenheimer analyst Andreas Argyrides said in a report to clients.
The biotech stock popped 10.7%, closing at 54.49 after breaking out of a cup base with a buy point at 50.14, according to MarketSurge.
Reducing Copper Levels
Monopar Therapeutics' drug works by binding to copper, lowering its levels in the blood.
The company ran three studies in a total of 255 patients for over six years. Patients noted neurological benefits, while physicians reported a psychiatric benefit. Those who started on standard drugs improved when switched to ALXN1840, while those who switched from ALXN1840 to standard drugs worsened.
ALXN1840 also proved to be relatively safe, with less than 5% of patients experiencing any drug-related serious side effects. Monopar noted less than 1% of patients reported any neurological side effects.
The results support Monopar Therapeutics' plan to submit a request to the Food and Drug Administration for approval in the first quarter, Oppenheimer's Argyrides said in a report. He rates the biotech stock a buy with a 77 price target.
All nine analysts following the biotech stock on FactSet rate it a buy.
Monopar stock has a best-possible IBD Digital Relative Strength Rating of 99. This means shares have performed in the top 1% of all stocks over the past 12 months.
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