Shares of Magenta Therapeutics (NASDAQ:MGTA) ended 4.6% higher on Monday before spiking almost 56% in the after-hours. The remarkable movement comes after the company posted positive updates from phase 1/2 of the trial on MGTA-117 for acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS).
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The MGTA-117 drug conjugate is a targeted conditioning product candidate designed to eliminate the CD-117 receptor protein in blood cancer cells. The treatment is still undergoing a clinical trial where three cohorts of patients are receiving three levels of doses (the dose in cohort 1 being the least). The phase 1/2 data revealed that the candidate could deplete a higher volume of target cancer blast cells in cohorts 2 and 3 compared to cohort 1.
Importantly, Magenta is still in talks with regulators to get MGTA-117 transplanted into eligible AML and MDS patients. Looking ahead, the company is pushing for another clinical trial on the MGTA-117 drug conjugate to test its effectiveness as an autologous ex vivo gene therapy in the first half of 2023.
The upbeat data can be a great opportunity for Magenta to revive its shares after languishing on the stock market this year. Shares are down 78% year-to-date.
Is Magenta Therapeutics a Good Stock to buy?
Based on the Buy rating of one bullish analyst, MGTA stock has a Moderate Buy rating with a price target of $6, indicating a 422% upside over the next 12 months.
