Guess which ASX stock is surging 11% on big US FDA news

Big news is lifting this stock higher on Wednesday. Let's find out what's happening.

| More on:

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

Imugene Ltd (ASX: IMU) shares are on the move on Wednesday and avoiding the market weakness after the clinical-stage immuno-oncology company announced a major regulatory milestone in the United States.

At the time of writing, the ASX stock is up 11% to 3.9 cents.

This compares favourably to a 0.4% decline by the All Ordinaries index in early trade.

A young man punches the air in delight as he reacts to great news on his mobile phone.

Image source: Getty Images

Why is this ASX stock surging?

Investors have been buying Imugene shares after it revealed that the US Food and Drug Administration (FDA) has granted Fast Track Designation to its allogeneic CAR T-cell therapy, azer-cel (azercabtagene zapreleucel), for the treatment of relapsed or refractory diffuse large B-cell lymphoma (DLBCL).

The FDA's Fast Track Designation is an important regulatory pathway designed to accelerate the development and review of promising therapies that target serious or life-threatening conditions and meet an unmet medical need.

For Imugene, this designation brings several benefits. This includes more frequent meetings with the FDA to discuss development plans, the option for rolling review of regulatory submissions, and potential eligibility for Accelerated Approval and Priority Review if key criteria are met.

What is azer-cel?

Azer-cel is an off-the-shelf CAR T-cell therapy designed to overcome the logistical challenges of traditional autologous CAR T treatments.

The company notes that unlike conventional CAR T therapies, which require a patient's own cells to be collected and modified—a process that can take weeks—azer-cel leverages pre-manufactured donor T-cells for rapid treatment delivery.

Clinical data from an ongoing Phase 1b trial has been promising, particularly in patients who have exhausted multiple prior treatment options.

A critical unmet need

The ASX stock highlights that DLBCL is the most common and aggressive form of non-Hodgkin's lymphoma, and many patients experience relapse or resistance to current treatments. Azer-cel offers a potential breakthrough for these patients by delivering a more accessible and effective alternative to existing therapies.

The ASX stock's managing director and CEO, Leslie Chong, was very pleased with the news. Commenting on today's development, Chong said:

Receiving FDA Fast Track Designation is a testament to the transformative potential of azer-cel for patients battling relapsed or refractory DLBCL. We are committed to working closely with the FDA to bring this important therapy to patients as efficiently as possible.

Despite today's gain, the Imugene share price is still down materially on a 12-month basis. Since this time last year, its shares have lost approximately 64% of their value.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

More on Healthcare Shares

A woman researcher holds a finger up in happiness as if making the 'number one' sign with a graphic of technological data and an orb emanating from her finger while fellow researchers work in the background.
Healthcare Shares

Should you buy CSL and Pro Medicus shares today?

Both stocks have been hammered, but brokers see upside of 60% or more.

Read more »

Female scientist working in a laboratory.
Healthcare Shares

This ASX biotech company has piled on more than 25% after a big announcement

A deal around a novel drug delivery compound has investors interested.

Read more »

A young man stands facing the camera and scratching his head with the other hand held upwards wondering if he should buy Whitehaven Coal shares
Healthcare Shares

Telix shares drop despite promising US FDA update

Market weakness is overshadowing this news.

Read more »

Stressed, unhappy and tired scientist with a headache working on a computer in a lab. Worried, anxious and frustrated pathologist, researcher and doctor struggling with burnout, tension and strain.
Healthcare Shares

Here are the latest growth forecasts for the CSL share price

Can this ASX share deliver healthy returns or will things get worse?

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Healthcare Shares

Game over? ASX biotech stock crashes 90% on big bad news

Is it game over for this stock? Let's find out.

Read more »

Three health professionals at a hospital smile for the camera.
Healthcare Shares

Should you buy low on these ASX healthcare stocks?

These two stocks could be poised for a bounce back.

Read more »

Woman with a concerned look on her face holding a credit card and smartphone.
Healthcare Shares

What on earth's going on with the CSL share price?

The company has long been one of the highest-quality businesses on the ASX, which makes its recent decline even more…

Read more »

Research, collaboration and doctors working digital tablet, analysis and discussion of innovation cancer treatment. Healthcare, teamwork and planning by experts sharing idea and strategy for surgery.
Healthcare Shares

These ASX healthcare stocks are set to thrive as the population ages

A powerful demographic tailwind, but can they execute?

Read more »