Key points:
- Mustung Bio jumped 20& on positive FY financials and corporate highlights
- 2021 involved multiple FDA approvals, including for gene therapy and cell therapy for leukemia
- Mustang reported a cash and equivalents total of $110.6M, up $11.8M from 2020
Biotech and pharmaceutical companies are commonly favored amongst investors. A solid product pipeline supported by cutting-edge forward-thinking research; a market that allows for competition without drowning out under-the-radar companies; all normally supported with a solid cash flow generally makes for an alluring investment. However, pharmaceutical companies are incredibly exposed to volatility; with huge rallies equally as common as sharp sell-offs.
Mustang Bio (NASDAQ: MBIO) jumped around 20% today as investors reacted well to the company’s FY21 financial results as well as an impressive list of annual achievements. Mustang Bio is a clinical-stage biopharmaceutical company specializing in utilizing breakthroughs in cell and gene therapies for potential cures for hematologic cancers, solid tumors, and rare genetic diseases.
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Over 2021, Mustang Bio made the following progress: The FDA approved two Mustang Investigational New Drug applications, the first to evaluate a gene therapy targeted at infants under the age of two with severe immunodeficiency, the second to initiate a clinical trial investigating the safety and efficacy of a cell therapy for non-Hodgkin lymphomas and lymphocytic leukemia. The company noted receiving a $2M grant from the National Cancer Institute for the partial funding of an MB-106 Phase 2 clinical trial.
Financially, Mustang reported cash and cash equivalents totaled $110.6M, an $11.8M increase from $98.8M as of December 31, 2020. Research and development expenses totaled $49.9M, compared to $37.2M in 2020.
Manuel Litchman, M.D., President and Chief Executive Officer of Mustang, remains highly confident about 2022:
“We anticipate another productive year in 2022, with several Mustang IND clinical trial initiations and data updates from our ongoing clinical programs at prominent medical conferences.”
Adding…
“With this steady progress across our clinical programs, and with our robust pipeline and strong cash position following completion of the debt facility with Runway Growth Capital, Mustang is poised to continue its success building an integrated cell and gene therapy company.”
As I’ve mentioned before, pharmaceutical companies are prone to strong volatility. MBIO shares are currently holding gains at around 20%, but it’s likely this will trail off in the coming weeks and months as momentum fades. MBIO has lost around 92% of its total stock value since beginning public trading in 2018.