Orphan Drug Status and Investor Confidence Boost Stock Prices of Moleculin Biotech and Innocoll Holdings

NEW YORK, NY / ACCESSWIRE / March 23, 2017 / Appointment of Steve Gottlieb in early March by President Trump to lead the FDA is generally seen as positive for the Biotech sector. A general relaxation of regulations that are likely to speed up the FDA approval process is now expected by companies and investors. Earlier in the year in its January 27th edition, Forbes stated that “our medical establishment lacks the leadership it needs to shift its efforts from disease cures to disease prevention.” Biotech companies that are in that subcategory, can possibly expect significant investor interest over the next 4 years.

RDI Initiates
Coverage:

Moleculin Biotech
Inc.
https://ub.rdinvesting.com/news/?ticker=MBRX

Innocoll Holdings PLC
https://ub.rdinvesting.com/news/?ticker=INNL

Moleculin Biotech investors saw its stock go up almost 25 percent on Wednesday, to close at $1.33 per share. The gain of $0.26 per share comes after its lead candidate drug, Annamycin, an anthracycline used in the treatment of Acute Myeloid Leukemia has been awarded status as an orphan drug by the FDA. An orphan drug designation is given to pharmaceutical companies that develop drugs for rare diseases, in many cases resulting in financial incentives to further incentivize development of the product. Moleculin began trading on NASDAQ on June 2nd, last year, at a price of $8.00 a share as compared to IPO price of $6 per share and since early January this year it is trading in the range near $2 to $1. Moleculin Biotech is a pre-clinical pharmaceutical company and it is working in collaboration with MD Anderson Cancer Center in Houston. The stock continued to gain ground in after-hours trading, adding another $0.02 to its share price.

Access RDI’s Moleculin Biotech Research Report at:
https://ub.rdinvesting.com/news/?ticker=MBRX

Innocoll Holdings stock closed Wednesday’s trading session at $1.19, up $0.14 on the day. The company is a pharmaceutical and medical device company, specializing in the manufacture and sale of collagen-based products and medical devices. It sales territory includes Europe, the Middle East, Asia, and the United States for its different products. Among its product offerings are CollaGUARD, Septocoll, and RegenePro. Its lead candidate XaraColl, has achieved positive pivotal results in Phase 3 clinical trials, however, U.S. FDA has rejected it filing for XaraColl, and the company received refusal to file a letter on December 29, last year, requiring additional information and explanation. Subsequently lawsuits have been filed by shareholders earlier this year, regarding Innocoll’s submission of XaraColl and for misleading statements about company’s business operations and prospects, however its stock price hasn’t been affected by those lawsuits. The company has seen improved sales in year 2016 over year 2015 and as of December 31st, 2016 it reported a cash balance of $15.6 million as compared to cash balance of $30.4 million reported on September 30th, 2016.

Access RDI’s Innocoll Holdings Research Report at:
https://ub.rdinvesting.com/news/?ticker=INNL

Our Actionable Research on Moleculin Biotech Inc. (NASDAQ: MBRX) and Innocoll Holdings PLC (NASDAQ: INNL) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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