Moleculin Biotech, Inc. (MBRX) received the approval of Fast Track Designation for Annamycin by the FDA after which the MBRX stock happened to be green today. MBRX stock price saw an uptrend of 21.08% to reach $4.48 a share as of this writing. The MBRX stock was down with a 3.39 drop at the previous closing. Let’s have a look at current scenarios.
A Brief look at Approval:
Moleculin Biotech is mainly working on the treatment of tumors and viruses via the development of oncology drug products. Moleculin stock recently announced that it has got approval for fast-track designation for Annamycin, an anthracycline antibiotic, by the U.S. Food and Drug Administration. In connection with this approval, MBRX will now be able to review Annamycin results against the treatment of soft tissue sarcoma (STS) lung metastases. There are good chances for Moleculin to approve its product against STS lung metastases as well as acute myeloid leukemia.
Why Annamycin is better?
Approximately 130000 cases of Soft tissue sarcomas are reported annually around the globe and most of them are handled through the surgical procedure. Analysis shows that 20 to 50% of these cases metastasize to the lungs and once it happens, it then becomes more difficult to treat such cases. So far treatment is very limited for this condition due to severe cardiotoxicity effects by previously approved drugs. Annamycin on the other hand proved to be much effective so far as it does not cause severe cardiotoxicity in patients and hence better than the former drugs.
Financial View of MBRX stock
Recently announced earnings results of RMBX stock show that Moleculin research and development surged to $12.8 million in 2020 as compared to $11.0 million in 2019 due to increased clinical trials that increased the operational costs. General and administrative costs were recorded at $6.8 million in 2020 while these were $6.3 million in 2019. An increase in these costs is mainly due to an increase in the staff but thanks to the COVID-19 that overall travel expenses were significantly reduced.
MBRX stock is enjoying the bullish sentiment in the stock market in response to fast-track designation approval for Annamycin. Management is optimistic to receive early approval for its product in the future. Hence investors should do fundamental as well as technical analysis of MBRX stock before taking any decision.