Here’s why the Actinogen Medical (ASX: ACW) share price is up 20%

Actinogen Medical shares are flying on news of the company’s XanaMIA study.

| More on:
A drawing of a white rocket streaking up, indicating a surging share pirce movement

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in Actinogen Medical Ltd (ASX: ACW) soared today after the company released news on the upcoming study of its drug designed to treat Alzheimer’s disease.

At market close, the Actinogen share price was trading at 16 cents – 19.23% higher than its previous close.

Let’s take a closer look at today’s news from the biotech company.

XanaMIA study

Today, Actinogen announced it has made deals with several companies to run the XanaMIA Part A dose-ranging study.

The dose-ranging study is the company’s first step towards testing whether XanaMIA can treat cognitive ability in volunteers and patients with mild cognitive impairment, the first clinical stage of Alzheimer’s disease.

The study will enrol 105 healthy volunteers aged 50 or older, starting next month. The volunteers will be given either 5 milligrams or 10 milligrams of XanaMIA to determine the minimum effective dose.

Actinogen also advised today that research organisation Avance Clinical will manage the XanaMIA study. Avance will charge Actinogen around $1.25 million for the service.

Additionally, Actinogen has employed Paratus Clinical to recruit the dose-ranging study’s subjects, for which Actinogen will provide a budget of around $850,000.

Paratus will also provide the 4 Australian clinical-trial sites that will house the study.

Finally, Actinogen has made an agreement with CogState Limited (ASX: CGS) to use the neuroscience technology company’s Neuropsychological Test Battery in the dose-ranging study.

CogState’s Neuropsychological Test Battery is a platform that delivers highly sensitive cognition tests.

Actinogen will pay CogState around US$300,000 for access to the platform.

Today’s news comes nearly 3 weeks after Actinogen announced the XanaMIA study received approval from the Bellberry Human Research Ethics Committee.

Following the XanaMIA Part A dose ranging study, Actinogen will begin its XanaMIA Part B study.

The Part B study will see people with early-stage Alzheimer’s disease treated with XanaMIA. It will try and find if the drug can treat mild cognitive impairment.

Actinogen share price snapshot

The Actinogen share price has performed exceptionally well on the ASX this year.

Currently, the Actinogen share price is a whopping 675% higher than it was at the start of 2021.

The company has a market capitalisation of around $215 million, with approximately 1.6 billion shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

A doctor appears shocked as he looks through binoculars on a blue background.
Healthcare Shares

Here’s what happened to the CSL share price in June

CSL shares were relatively positive performers in June...

Read more »

Two happy scientists analysing test results.
Healthcare Shares

Up 13% in a month, Polynovo share price bounces back after being dumped from ASX 200

What's going on with the Polynovo share price?

Read more »

health workers shake hands and congratulate each other on good news
Share Gainers

This ASX All Ordindaries healthcare share is ripping 17% higher amid a new contract win

Investors seem to like the contract win from this healthcare player.

Read more »

Two researchers discussing results of a study with each other.
Healthcare Shares

Here’s how ASX 200 healthcare shares performed in June

Healthcare shares were a tad ill in June.

Read more »

A doctor appears shocked as he looks through binoculars on a blue background.
Healthcare Shares

What’s the outlook for the CSL share price in July?

We take a look at what the experts are saying about the biotech company's shares.

Read more »

Photo of a group of scientists cheering while working in a lab as the Race Oncology share price skyrockets today on positive study results
Healthcare Shares

Why is the Race Oncology share price soaring 13% today?

New trial results have excited ASX investors.

Read more »

Rising arrow on a blue graph symbolising a rising share price.
Healthcare Shares

Starphama share price lunges 5% on product relaunch

Early support for Starphama on Thursday has it off to a great start.

Read more »

Man with rocket wings which have flames coming out of them.
Healthcare Shares

Why is the Paradigm share price rocketing 20% higher today?

The Paradigm share price is having a very strong day...

Read more »