Anchiano Therapeutics Ltd (NASDAQ: ANCN) is a biopharmaceutical company that focuses on treating cancer through innovating, developing, and commercializing targeted novel therapies.
What happened in the market?
The biotechnology stock has soared by 39.82% to $4.67. It had previously closed at $3.34 on Monday. The volume of shares that exchanged hand on Monday before the market closed was a whopping 49M as compared to the average trade volume of 2.87M.
There was specific news that led to the rise of the stock price and high volume of exchange since Friday which kept accelerating all the way to the closing of the market on Monday. Keep in mind that Biotech penny stocks have volatility in the nature of their stock movement. Positive data news for clinical trials and the next phase of drugs or development of treatment can lead to stock price sky-rocketing while unsuccessful trial news can cause the stock to spiral down.
Special letters received by Shareholders bearing exciting news
In Anchiano Therapeutics Ltd’s stock case, the plausible reasoning that led to the rise in stock price can be the anticipation of the date 15th March. On this date, there will be a special shareholder meeting that will be held for a long-dragged merger between the two Israeli-based companies- Anchiano Therapeutics Ltd (NASDAQ: ANCN) and Chemomab Ltd. This was confirmed on Monday when shareholders started receiving letters for the invitation to the special meeting.
Anchiano Therapeutics Ltd (ANCN) has been developing major news in the past but the news did not sustain its hype and kept dying out. One of the reasons is because the merger was expected to proceed earlier into the year 2021 and before the merger, the biotech company released news about initial trials of cancer research which were then discontinued in the second phase. The reason so is because the data analysis of treatment through gene therapy suggested that the treatment of bladder cancer had very little probability of full responses in the patients.
What will happen on 15th March?
On 15th March, the special shareholder meeting will allow shareholders to vote on the proposed merger and if it goes through, the 16-year old company, AnchianoThereapeuticsLtd (ANCN) will switch its trade ticker to “CMMB” and its public company name to Chemomab Therapeutics Ltd. After this merger, Chemomab Ltd would become the majority holder of the merged company and they will focus on the PIPE financing to advance CM-101 into Phase 2 clinical trials in rare fibrotoc indications.
What should investors look forward to?
Once the approval of the merger is announced, the investors will be attracted by this news and the stocks will likely see another positive uplift. So investors interested in biotech pennystocks should mark their calendar for 15th March and afterwards look forward to the announcement of trial inceptions for CM-101. CM-101 phase 2 trials will focus on orphan indications of inflammatory-fibrotic diseases.
This is significant for investors from the point-of-view of being that the specific diseases targeted in this trial are sclerosing cholangitis (PSC) and systemic sclerosis both damage multiple organs and both have unmet needs with the patients suffering from debilitating pain due to no FDA-approved diseases. Positive news of success of phase2 trial can lead to possibility of FDA approval which will correspond to a strong uplift in the stock-movement of the then-merged Chemomab Therapeutics Ltd.