There’s a potential lifesaver in the pipeline – along with powerful profits – as the world awaits vitally significant data
By all accounts, 2020 was a bumpy ride for the markets and for the health-care industry. With problems come opportunities to heal and to solve problems, however. Previously unknown biotechs become market darlings practically overnight and tremendous wealth is built for early-stage investors.
It takes a keen eye for value – and weeks, if not months of research – to spot these under-the-radar opportunities in the markets. One that I’ve got my eye on right now is a clinical-stage biotechnology company called CEL-SCI Corp. (CVM) specializes in developing immunotherapy technologies to treat cancers as well as autoimmune and infectious diseases.
While CVM stock isn’t a hot topic of discussion in the financial media (yet), CEL-SCI Corp. could be on the verge of a breakthrough in a high-need, potentially lifesaving medical niche. Judging from the available data, the upside potential for CVM is massive – just one FDA approval could make this little-known biotech contender a market darling practically overnight.
A Closer Look at CVM Stock
What’s great about CVM stock is that while it could turn out to be a long-term runner, the stock is also a dip buyer’s dream. It seems that every time CVM dips to $12, the buyers swoop right in and pull it back up to $17.
In other words, the market has established a nice, predictable range for CVM stock in 2020. Of course, a new year is upon us and this range could be breached at any given moment. Still, the market has made it abundantly clear that there are plenty of buyers waiting in the wings when CVM dips to the $12 area.
Now, please be advised that it requires some volatility tolerance if you’re going to take a position in CVM stock. A beta of 2.2 suggests that CVM tends to move faster than the overall stock market.
But then, that comes with the territory if you’re going to invest in biotechnology stocks. Big moves in both directions are not unusual with this sector, and if you’re going to see (hopefully) substantial long-term gains with CVM stock, you have to be willing to handle the ups and downs along the way.
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Join our free mailing list below to receive real-time news alerts and our next featured stock!Multifaceted Treatment with Multikine
CEL-SCI Corp.’s flagship product is the injectable proposed first-line treatment for head and neck cancer, known as Multikine. The objective with Multikine is to modulate the body’s immune system in order to induce the direct killing of tumor cells, while also limiting the possibility of tumor recurrence.
At the same time, Multikine is designed to generate a sustainable anti‐tumor response in the body, while also rendering tumor cells more susceptible to subsequent radiation/chemotherapy treatments.
Thus, Multikine fights tumors in multiple ways, using the body’s own immune-system capabilities. Impressively, a Phase 2 clinical trial for Multikine yielded a 33% improvement in overall survival after just three weeks of treatment, with no reported severe adverse events.
On the Cusp of a Breakthrough
As encouraging as the Phase 2 results were, the next phase could be even better. The market and the medical community are awaiting the results from a Phase 3 trial which, if you can believe it, took nine years to complete.
Why has the trial taken so long? It’s actually a very good sign, as the 928-patient study was designed to continue until 298 of those patients pass away (that’s the number of deaths needed in order for the study to yield statistically adequate proof of survival benefit for Multikine).
Hence, the clinical trial must continue until 298 patients pass away – and CEL-SCI Corp. is nine years into the trial and counting. This suggests that Multikine could be highly effective in inhibiting non-survival events in the patients.
History would indicate a three-year survival rate of around 50% – and since the last patient in the study was enrolled in September of 2016, there statistically should have been over 400 deaths (as of July 3). Clearly, while there’s currently (as of this writing) a data lock in effect, CVM stock could catapult much higher when the Phase 3 data is finally available to the public.
The Bottom Line
How much higher could CVM stock go when the Phase 3 data for Multikine is released? The sky’s the limit, but the smart money’s betting that stock will go to $80 or higher.
As the medical and trading communities await the final results, CEL-SCI Corp. will continue to advance its innovative therapies – and a game-changing breakthrough could be just around the corner.
