9 Meters Biopharma [NASDAQ: NMTR] is showing some interesting price action. Yesterday, the stock gapped up and pushed through monthly support at $0.80. This price action came just a day after the company was highlighted at the Truist Securities Catalyst conference call. The conference call touched on preliminary phase 1 /2 data from short bowel syndrome that is expected in the second half of 2020. The highlight points to the progress that 9 Meters has made in the quest for a treatment for short bowel syndrome.
It also comes just a week after 9 Meters had provided an update on its treatment for the problem. In its update, the company stated that it had kick-started phase 1 ./2b clinical trial for its treatment adding that the first patients had been given a dose of the trial treatment in July, with the results expected in Q1 of 2021.
The company also stated that it had amended how it was defining the primary endpoint for its phase 3 trial for its celiac disease treatment. It added that the amendment allowed for a reduction in the number of participants to 525 from the previous 630. The update also highlighted that the company was anticipating multiple inflection points all through the next 18 months. While providing the update, CEO John Temperato stated that the company’s advances at the clinical trials have been good and that they were happy with the team.
The stock has gained upside momentum after the release of this update indicating that investors are confident that the treatments could turn successful. The excitement around this potential could see the stock keep gaining all through the year. Positive results from the trial in Q1 of 2021 could see the stock gain even further.
Besides, the excitement around the trials, there are several other factors that could see this stock keep gaining in value in the near-term. One of them is that it has the finances to see its treatments succeed. The company recently gave an update for Q2 and stated that in the quarter, its cash and cash equivalents stood at $13.5 million. This was a significant increase compared to Q1 when it’s cash and cash equivalents stood at $2.7 million. The company’s capability to see its programs through instills confidence in investors and could help support the price in the near-term.
Besides these internal factors, the markets have rebound despite the COVID-19 pandemic. There is lots of optimism that a COVID-19 vaccine could be available by the end of the year. Such a development could see NMTR, with all the positive vibe around it, gain all through the year.
About 9 Meters Biopharma
9 Meters Biopharma is a Biopharmaceutical Company that develops treatments for rare disorders. It is headquartered in Raleigh, North Carolina.