The Argenica Therapeutics Ltd (ASX: AGN) share price was rocketing today after the company released positive news on a US patent.
The biotechnology company's shares were up 12.36% at the close, trading at 75 cents.
Argenica is working on new therapeutics to protect the brain after a patient suffers a stroke and other brain injuries.
Why is the Argenica share price up today?
Investors appeared to welcome news the company will be granted a US patent for its lead drug candidate ARG-007.
Argenica said this meant it would be able to use ARG-007 to treat people with stroke, traumatic brain injury and hypoxic-ischaemic encephalopathy (HIE). HIE is a condition that arises from not having enough oxygen or blood flow to the brain.
Argenica now plans to spearhead the drug's commercialisation in the lucrative United States market.
The company advised it was given official "notice of allowance" for the patent, with the patent being formally granted within months.
The patent claim also covers the drug's use for other diseases including multiple sclerosis, Parkinson's disease, Huntington's disease and epilepsy.
Comment from management
Argenica CEO Dr Liz Dallimore welcomed the announcement, saying:
The granting of this patent will strengthen our ability to enter into commercial negotiations with US pharmaceutical companies in the future.
The allowance of the claims in Argenica's US patent are essential to potentially commercialising ARG-007 in our lead applications of stroke, TBI and HIE in the US.
Argenica Therapeutics share price snapshot
The Argenica share price has shot up in 2021, up 275%. The company listed on the ASX in June.
Over the past month, Argenica shares are up 50%. The company has a market capitalisation of about $35 million based on the current share price.
