Argenica (ASX:AGN) share price leapt 12% on US patent news today

This biotechnology company has released positive patent news.

four excited doctors with their hands in the air

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Argenica Therapeutics Ltd (ASX: AGN) share price was rocketing today after the company released positive news on a US patent.

The biotechnology company's shares were up 12.36% at the close, trading at 75 cents.

Argenica is working on new therapeutics to protect the brain after a patient suffers a stroke and other brain injuries.

Why is the Argenica share price up today?

Investors appeared to welcome news the company will be granted a US patent for its lead drug candidate ARG-007.

Argenica said this meant it would be able to use ARG-007 to treat people with stroke, traumatic brain injury and hypoxic-ischaemic encephalopathy (HIE). HIE is a condition that arises from not having enough oxygen or blood flow to the brain.

Argenica now plans to spearhead the drug's commercialisation in the lucrative United States market.

The company advised it was given official "notice of allowance" for the patent, with the patent being formally granted within months.

The patent claim also covers the drug's use for other diseases including multiple sclerosis, Parkinson's disease, Huntington's disease and epilepsy.

Comment from management

Argenica CEO Dr Liz Dallimore welcomed the announcement, saying:

The granting of this patent will strengthen our ability to enter into commercial negotiations with US pharmaceutical companies in the future.

The allowance of the claims in Argenica's US patent are essential to potentially commercialising ARG-007 in our lead applications of stroke, TBI and HIE in the US.

Argenica Therapeutics share price snapshot

The Argenica share price has shot up in 2021, up 275%. The company listed on the ASX in June.

Over the past month, Argenica shares are up 50%. The company has a market capitalisation of about $35 million based on the current share price.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

A hipster dude leaps in the air with glee, seeing positive news on his tablet.
Healthcare Shares

Which ASX 200 stock is jumping 11% on big news?

Investors are responding very positively to a big announcement.

Read more »

Senior woman using cpap machine to stop choking and snoring from obstructive sleep apnoea with bokeh and morning light background.
Healthcare Shares

Up more than 75% since October 2023 — are ResMed shares a buy, hold or sell?

ResMed shares have surged more than 75% since October 2023, but is it too late to buy? We break down…

Read more »

Stethoscope with a piggy bank in the middle.
Broker Notes

Australian health insurance: Does Macquarie prefer Medibank or NIB shares?

Medibank and NIB shares have both surged in 2025. Here’s what Macquarie expects now.

Read more »

Two brokers analysing stocks.
Healthcare Shares

Why does Macquarie think Fisher & Paykel shares are a buy?

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares have been on form over the past 12 months. During this…

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Healthcare Shares

Which small cap ASX share is jumping 10% on strong results

Investors have been bidding this stock higher today. But why?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why Macquarie forecasts 30-50% upside for these ASX All Ords healthcare stocks

Macquarie updated its target price on these three ASX All Ords healthcare stocks.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Healthcare Shares

Guess which ASX 200 stock is jumping 10% on big news

This stock is catching the eye with a strong gain on Thursday. But why?

Read more »

a young woman holds her hand to her ear and leans sideways as if to listen to something that's surprising her as her eyes and her mouth are wide open.
Healthcare Shares

Down 15% since January, are Cochlear shares now a buy?

Let's see what analysts are saying about this blue chip.

Read more »