Mustang Bio (NASDAQ:MBIO)
Mustang Bio Inc, a clinical-stage biopharmaceutical company, focuses on translating medical breakthroughs in cell and gene therapies into potential cures for hematologic cancers, solid tumors, and rare genetic diseases.
On April 17th, during after-market trading, Mustang Bio jumped nearly 500% – an hour after the bell rang!!
Why is that??
The company reported results from its Phase1/2 clinical trial of a gene therapy to treat XSCID/ SCID-X1 (Severe combined immunodeficiency), which is sometimes called "The bubble boy” (a genetic disorder which results in an extreme vulnerability to infectious diseases).
According to Mustang Bio news release, a lentiviral (lente – Latin for "slow") gene therapy was used on infants under two years of age with the bubble boy disease. The gene therapy involved collecting the babies' bone marrow and correcting the genetic defect in their DNA soon after their birth. The "correct" gene – used to fix the defect – was inserted into an altered version of one of HIV, the virus that causes AIDS.
There are currently 10 infants that have gone through this therapy. The company declared that its’ therapy has been a success for eight patients tracked in the study. All eight infants have cleared their previous infections and are now growing normally.
The stock jumped within only 5 minutes from a closing price of 2.66$ to their highest price of 15.55$ (484% jump).
It didn’t last more than 5 minutes and as can be seen in the below intra-day chart, started moving down and closed the next day (18th) at 5.64$ (a move of 100%).