Which junior biotech’s shares are flying on positive trial news?

Shares in Argenica Therapeutics Ltd (ASX: AGN) are trading more than 20% higher after the company released positive clinical trial results.

Argenica, in its own words, is “a biotechnology company developing novel therapeutics to reduce brain tissue death after stroke”.

No adverse interactions a positive

The company said in a statement to the ASX on Thursday that it was pleased to report the results of a study of its lead drug candidate ARG-007 and its interaction with clot dissolving agent tenecteplase (TNK).

As the company said:

The purpose of this study was to determine whether ARG-007 interferes with the clot dissolving activity of TNK, a genetically modified version of alteplase and a recombinant tissue plasminogen activator, recently approved by the FDA (Food & Drug Administration) for the treatment of acute ischemic stroke.

The company said blood clots from four donors were assessed as part of the trial, which found that ARG-007 did not inhibit the clot dissolving effect of TNK.

The company said further:

This finding is particularly important because demonstrating a lack of inhibition of the activity of clot dissolving drugs is a key FDA requirement when developing a neuroprotective therapy intended to be used alongside standard-of-care thrombolytics like TNK. Confirming that ARG 007 does not interfere with TNK’s mechanism of action significantly de-risks the program, supports the overall safety profile of the drug, and represents a critical step toward resolving the FDA’s questions and advancing the investigational new drug application.

Building on previous results

Argenica said this new study complemented a previous study which also showed no adverse interactions with another drug called alteplase.

The company said it would now move ahead with necessary submissions to the FDA.

With the TNK drug–drug interaction study now successfully completed, Argenica will incorporate these results into its formal response to the US FDA, addressing one of the key requirements outlined in the FDA’s clinical hold letter1. The two remaining FDA-requested assays have already commenced, and the Company anticipates data from these studies to be available in Q1 CY26. To further strengthen the IND package, Argenica is generating additional data on the maximum tolerated dose of ARG-007 in rats to help inform the clinical safety margin for dosing in humans, as well as collating safety data from the recently completed Phase 2 clinical trial to ensure the FDA has all the relevant data required to lift the clinical hold.

Argenica shares were trading 20.4% higher at 26.5 cents on the news on Thursday. The company was valued at $28.3 million at the close of trade on Wednesday.  

The post Which junior biotech’s shares are flying on positive trial news? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.