Vericel Corp (NASDAQ: VCEL)
Vericel is having an incredible day in the market today after a key announcement the company made yesterday. The announcement surrounded one of the company’s lead drug candidates and the results of that candidate in Phase 2b trials. Today, we’ll take a look at the results, how the market reacted to the news, and what we can expect to see from VCEL moving forward. So, let’s get right to it…
VCEL Announces Solid Phase 2b Data
Vericell has been working on a treatment for patients with advanced heart failure do to ischemic dilated cardiomyopathy, or DCM. The treatment is known as ixmyelocel-T and a recent Phase 2b study known as ixCELL-DCM has shown some promising results. Ixmyelocel-T has recently been granted orphan product designation by the FDA for use in the treatment of DCM. The primary endpoint of the trial was to demonstrate a reduction in the total number of deaths, cardiovascular hospitalizations or unplanned outpatient and emergency department visits as the result of acute decompensated heart failure during a 12 month period following treatment with ixmyelocel-T when compared to a placebo. It was announced yesterday that this primary endpoint was met. Also, the instances of adverse events were comparable to lthose treated with the placebo. In a statement, Dr. David Recker, chief Medical officer at VCEL had the following to say…
“The result of the ixCELL-DCM study, which we believe is the largest randomized cell therapy trial to treat congestive heart failure completed to date, demonstrated statistically significant and clinically meaningful reduction in cardiac events in patients who received treatment with ixmyelocel-T compared to placebo… We are very excited about these study results given the lack of treatment options for end-stage heart failure patients.”
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How The Market Reacted To The News
As investors, we’ve come to realize that any time there is positive news with regard to a publicly traded company, we can expect to see gains in the value of the stock associated with that company. This is especially the case when it comes to primary endpoints being met during studies in association with the biotechnology industry. The reality is that any time studies meet primary endpoints, we can expect to see incredible gains in the stock or stocks associated with the study. As a result, of the strong data from the Phase 2b study, we saw incredibly strong growth on VCEL yesterday. That strong growth is being followed up on today as well. Currently (11:27), Vericel is trading at $4.25 per share after a gain of $0.30 per share or 7.68% thus far today.
What We Can Expect From VCEL Moving Forward
Moving forward, I have an overwhelmingly bullish expectation of what we can expect to see from VCEL. The reality is that with ixmyelocel-T, the company is working on a treatment that is much needed in the medical industry. The promising results of all studies associated with the treatment thus far build excitement around the stock. This will likely keep VCEL climbing in the short term. However, it also means quite a bit for the long term. With the overwhelmingly positive results we’re seeing from the treatment, it only makes sense that Phase 3 will also go well, leading to a New Drug Application submission and ultimately approval by the FDA, which will in turn lead to profits. All in all, things are looking up for Vericel.
What Do You Think?
Where do you think VCEL is headed moving forward and why? Let us know your opinion in the comments below!