Mustang Bio (MBIO) Stock Explodes 260% After FDA Grants Key Cancer Drug Designation

Mustang Bio Inc MBIO shares are trading sharply higher Monday afternoon. The company earlier saw a positive development as the FDA granted Orphan Drug Designation to its cell therapy candidate, MB-101. Here’s what investors need to know.

What To Know: This designation is for the treatment of aggressive brain cancers, including recurrent diffuse and anaplastic astrocytoma and glioblastoma.

Per Mustang Bio, the designation provides significant incentives, including potential tax credits, user fee waivers and seven years of market exclusivity upon approval. This status is granted to therapies for rare diseases affecting fewer than 200,000 people in the United States.

Manuel Litchman, M.D., President and CEO of Mustang, expressed enthusiasm, stating the designation is a “strong validation for our science.” He highlighted the company’s strategy to combine MB-101, a CAR T-cell therapy, with MB-108, an oncolytic virus. This combination aims to enhance the tumor-fighting capabilities of MB-101.

According to the company, preclinical data has shown promise for this dual approach. Notably, two patients with “hot” tumors, indicating a pre-existing immune response, achieved complete and lasting remissions when treated with MB-101 alone.

Phase 1 clinical trials for both therapies are ongoing. However, Mustang Bio emphasized that further development of this promising brain cancer program is contingent on securing additional funding or a strategic partnership.

Price Action: According to data from Benzinga Pro, MBIO shares are trading higher by 191.6% to $3.47 Monday afternoon. The stock has a 52-week high of $25.00 and a 52-week low of $0.89.

How To Buy MBIO Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Mustang Bio’s case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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