Shares in Scancell Holdings (LON:SCLP) rose to a two-month high after US Food and Drug Administration granted orphan drug designation (ODD) to the company’s SCIB1 ImmunoBody for the treatment of later-stage cancer.
“We believe that the award of ODD will increase the commercial attractiveness to a pharmaceutical partner for SCIB1 alongside what it exciting clinical data, thus far generated in the Phase I/II clinical trial,” said broker Cenkos.
“The award of ODD is a potentially commercially important milestone as it allows for certain financial incentives to take SCIB1 through to the US market,” said broker Cenkos. It rates Scancell a ‘buy’.
SCIB1, Scancell’s first clinical candidate drug, is being developed for the treatment of metastatic melanoma, also known as stage IV melanoma, which occurs when cancerous cells spread to other parts of the body.
Under orphan drug status, SCIB1 qualifies for a 50% tax credit for clinical trials, a waiver of the prescription drug user fee for the drug approval procedure and at least seven-year market exclusivity following drug approval by the FDA.
Shares in Scancell, which was set up 1997 as a spin-out from the University of Nottingham, were up 2.0% at 35.95p on Tuesday, the highest price since Dec 11.