Why are Mustang Bio shares (MBIO) up almost 500%?

The Mustang Bio stock price closed on a high yesterday, trading at $0.75.

The pharmaceutical company has gone vertical in the past 24 hours, climbing 476.9% to go from $0.13 to $0.75 in a single day.

But why?  

Potential cancer breakthrough

Yesterday, Mustang Bio announced via press release that it had had promising results from clinical trials relating to an experimental treatment developed by Mustang Bio for Waldenstrom macroglobulinemia (“WM”), a rare form of blood cancer. 

The trial, which contained just 10 patients, showed a marked improvement over more traditional existing treatments for the same disease, which all patients had undergone with no discernible improvement.

Instead, in Mustang Bio’s new results, released and presented during a poster session at the European Hematology Association 2024 Hybrid Congress (“EHA2024”) by Dr Brian Till of University of Washington, showed dramatically more success.

According to Mustang Bio:

Upon release of the news, the Mustang Bio share price surged, as the treatment, once finalized, could potentially give the company a corner of the market on treating a very specific, hard-to-eradicate cancer.

Mustang Bio’s year to date so far

The news was welcome good news for Mustang Bio, which has been embattled lately.

The biopharma company has been on a losing streak most of 2024 so far, having lost $0.57 of its stock price, more than 43%, since open ing for the year at a stock price of around $1.32.

What is Mustang Bio?

Mustang Bio is an American biopharmaceutical company based in Massachusetts, United States.

The company specializes in research and development of new drug therapies, meaning that they develop, in-license and manufacture next-generation treatments, for example cell and gene therapies, for treatments of various diseases.

They are best known for their work on cell therapies into potential cures for difficult-to-treat cancers.