Cynata Therapeutics share price jumps 14% on COVID-19 trial

The Cynata Therapeutics Ltd share price leapt 14% this morning as patient enrolment begins on the company's COVID-19 trial.

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The Cynata Therapeutics Ltd (ASX: CYP) share price leapt by as much as 14% this morning as patient enrolment begins on the company's COVID-19 trial.

Cynata is trialling the use of its Cymerus MSC technology in COVID-19 patients with respiratory distress. The study will be conducted in New South Wales with 12 patients to receive Cymerus MSC infusions. Efficacy of the treatment will be assessed according to levels of oxygen in the blood as well as safety and tolerability. 

The Cynata share price has since pulled back slightly to 92 cents per share, up 11.59% on yesterday's close.

jump in asx share price represented by man leaping up from one wooden pillar to the next

Image source: Getty Images

What does Cynata Therapeutics do? 

Cynata Therapeutics is a stem cell and regenerative medicine company. It is focused on the development of therapies using its proprietary therapeutic stem cell platform technology, Cymerus. Cymerus is able to achieve economic manufacture of cell therapy products, including mesenchymal stem cells (MSCs), at a commercial scale, without the limitation of multiple donors. 

MSCs are primarily found in the bone marrow and remain dormant until called upon to promote healing within the body. They age as we age, and their number and effectiveness decreases over time. MSCs are at the forefront of a new generation of treatments being investigated for use in treating diseases including osteoarthritis, heart disease, and Crohn's disease. Cynata's Cymerus technology allows cells for therapeutic use to be produced in virtually limitless quantities. 

COVID-19 treatment 

Cynata is now conducting a clinical trial into the use of Cymerus MSCs in the treatment of coronavirus. The trial forms part of a broader clinical development strategy for the Cymerus MSC product to be trialled in COVID-19 patients in other countries.

Commenting on the trial, Cynata's CEO Ross MacDonald said:

Our substantial pre-clinical database in relevant disease models, together with the urgent need for more effective treatments for critically ill patients with COVID-19 patients, allowed us to accelerate planning….we are pleased to be able to move so quickly to further investigate the potential benefits our MSCs could have to treat patients in dire need during this global pandemic.

Cymerus MSCs have demonstrated promising pre-clinical trial results in several conditions that can arise from severe COVID-19 infection, including acute respiratory distress syndrome. Cynata plans to advance Cymerus MSCs into phase 2 trials for severe complications arising from COVID-19 as well as graft versus host disease. A phase 3 trial is planned for osteoarthritis.

The utility of the technology has also been demonstrated in preclinical models of asthma, diabetic wounds, heart attack, sepsis, and acute respiratory distress syndrome. 

Foolish takeaway 

Cynata joins Mesoblast Limited (ASX: MSB) in trialling treatments for COVID-19. The focus on this new clinical development area is a logical step based on the current global environment and Cynata's solid pre-clinical foundations in respiratory and related diseases. 

The Cynata share price is currently trading at 92 cents per share, putting its market cap at just over $100 million.

Motley Fool contributor Kate O'Brien owns shares of CYNATA THR FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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