- Biorestorative is newly quoted on Nasdaq and if we’re honest about it it hasn’t done well
- Overnight and this morning Biorestorative has jumped 42% which is better performance
- The news is that they’ve appointed a clinical manager for their Phase II trial
Biorestorative Therapies Inc (NASDAQ: BRTX) has jumped 43% so far – at pixel time – this morning premarket. The drive is their announcement of the appointment of a clinical manager for their Phase II trials. This is a necessary and vital part of the development of such a treatment and so it is being taken as a definite step forward.
Biorestorative has had what we might call a hard life. There’s been a recent – well, 2020 – Chapter 11 exit for example. The Biorestorative stock was only listed, in its present form, on Nasdaq a couple of months back. Since then the performance has been distinctly unimpressive, a gradual fall to yesterday’s $4.57. That’s now back up that 42% to give the real-time price of Biorestorative of $6.68 right now.
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The company is developing adult stem cell treatments for two different clinical areas. Adult stem cells are one of those research areas that holds a great deal of promise but then, well, will it really and wholly work? Of the two clinical areas, degenerative disc disease is the one that this current announcement is about.
The actual announcement is here from Biorestorative. As background, we need to understand that medical research comes in three stages. Phase I is really about, well, is there any clinical response at all to this chemical, drug of treatment? Phase II is if that is positive then try it out on some number of people with the actual problem and see whether there are any cures. Phase III then becomes the large scale trials when effectiveness is again tested but the real thing is to check safety – rare side effects will only be found with widespread use after all.
Each phase tends to get financed separately. So, something comes out of Phase I, a capital raise (or other financing decision) to get through Phase II and so on. Each candidate drug and or treatment is treated in this manner.
Biorestorative has that adult stem cell treatment for lower back disc degeneration. Or perhaps thinks it does, maybe. The next stage is to go into Phase II trials to really check. They’ve got FDA permission to do that, their return to NASDAQ also financed their ability to run through the whole Phase II trial sequence.
What has bounced the stock is their announcement at close yesterday that they’ve appointed the clinical manager necessary to run that Phase II trial. It might even seem like a small thing but it’s an essential step to gaining authorisation to sell the treatment in the fullness of time.
It’s possible to think that the Biorestorative stock price will carry on motoring today – momentum trades are, after all, a thing. It’s also possible to think that the rise will fade off as there is still some way to go before market licencing. Of such differences of opinions are trading strategies made.