Boston, MA 06/19/2014 (wallstreetpr) – StemCells Inc (NASDAQ:STEM) is high on something today. The company reported widely positive results from the Phase 1/2 study of its age-related muscular degeneration (AMD) treatment. The results showed that HuCNS-SC led to significant vision improvement on patients tried. The drug is poised to enter the next level of trial towards its approval and marketing.
The study focused on the safety and efficacy of the treatment on adults above 55 years of age. AMD is a condition that leads to vision impairment, and it is a major cause of blindness in adults who are over 55 years. In the U.S., for instance, the condition affects millions of people above 50 years. The most recent estimates reveal that up to 10 million Americans are victims of AMD.
According to the Phase 1/2 trial results, HuCNS-SC helped to retard the progress of AMD by 65 percent compared to its natural rate of growth, and 70 percent compared with a controlled eye. The study captured seven patients of which four reported improved vision while three reported stability in contrast sensitivity.
Expanding drug mandate
StemCells Inc (NASDAQ:STEM) reported it was testing HuCNS-SC in a wide range of therapeutic areas for efficacy. As such, the drug is currently being tested for Spinal Cord Injury, Pelizaeus-Merzbacher Disease (PMD) as well as AMD, which appears to be the primary target. It is also worth noting that the drug is also being tested in a preclinical trial for the treatment of Stroke and Alzheimer’s disease.
Buoyed by compelling Phase 1/2 results, the company not only seeks to enter the drug into the next trial phase, but also has big hopes that it will success through approval for commercialization.
Investors also showed confidence in the treatment, pushing shares up more than 20 percent in the morning session on Thursday.
Analysts have their say
The majority of analysts covering StemCells Inc (NASDAQ:STEM) believes that the stock is a Buy. Out of four analysts, three recommend a Buy while one recommends a Sell. The stock carries an average price target of $2.75 per share, which suggests about 45 percent premium over the prevailing price.
