CERo Therapeutics (CERO) stock soared on Monday as investors reacted to the latest preclinical data from the immunotherapy company. This covers its lead compound, CER-1236, and its ability to kill ovarian cancer cells without indications of toxicity.
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Breaking Down the CERO Cancer Data
CERo Therapeutics presented its data during the Society for Immunology of Cancer (SITC) 2024 conference. The big news here is that animal models showed the ability of CER-1236 to increase TIM-4-L in ovarian cancer cell lines, resulting in the death of these cancer cells. A major highlight of this study was the destruction of the ovarian cancer cells without a negative effect on healthy cells.
Interim CERo Therapeutics CEO Chris Ehrlich said the following about the positive cancer data –
“These data are of particular interest as the Company plans to apply for Orphan designation at the appropriate time in clinical development.”
How This Affects CERO Stock Today
Obtaining an Orphan designation would be a major win for CERo Therapeutics. It would grant the company several benefits from the FDA by developing CER-1236 as a cancer treatment. Among them are tax exemption for qualified clinical trials, exemption from user fees, and a possible seven years of market exclusivity following approval.
The results of this recent preclinical study have caused extreme movement for CERO shares. As of writing, the stock is up 164.67% in the last two days, with more than 794.76 million shares changing hands. For comparison, the company’s three-month average daily trading volume is 8.84 million shares.
What’s Next for CERO?
While that movement is amazing, it doesn’t guarantee a positive future for CERo Therapeutics. Investors will note that the company’s stock is currently down 98.4% year-to-date. Shares of CERO have been on a downward trend since the company’s public debut via a special purpose acquisition company (SPAC) merger with Phoenix Biotech Acquisition Corp. earlier this year.
Leadership troubles add to this. Former CEO Brian Atwood resigned from the company in September alongside Chief Financial Officer Charles Carter and Chief Technology Officer Daniel Corey.
In October, CERO added Andrew Kucharchuk as its new CFO, and Kristen Pierce joined as Chief Development Officer. These recent leadership changes are one reason investors may want to be careful about investing in CERO stock despite its rally today.
As of now, no analysts are covering the stock. Hence, no price target is assigned for CERO stock.
