Why is this ASX 300 healthcare stock surging 12% today?

An announcement is getting investors excited today. Let's find out what's happening.

| More on:
Shot of a young scientist using a digital tablet while working in a lab.

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

sdf

Clinuvel Pharmaceuticals Limited (ASX: CUV) shares are having a strong finish to the week.

In morning trade, the ASX 300 healthcare stock is up a sizeable 12% to $17.00.

Why is this ASX 300 healthcare stock rocketing?

Investors have been buying Clinuvel's shares this morning after it announced the final set of results from its CUV151 study. It is evaluating the DNA-repair capacity of afamelanotide on skin of healthy volunteers exposed to ultraviolet (UV) radiation.

This study was undertaken at Salford Royal Hospital in Manchester. It is a centre globally acknowledged for its expertise in assessing the effects of UV-induced skin damage.

The results from CUV151 were presented overnight at the British Association of Dermatologists meeting in Manchester.

According to the release, the analysis of biopsies from seven patients with fair skin types taken prior to, and six days after afamelanotide treatment, illustrated that without afamelanotide, UV-irradiation resulted in 625 differentially expressed genes (DEGs) in comparison to non-irradiated skin.

However, with afamelanotide, the DEGs between irradiated versus non-irradiated skin reduced to 183. This is a factor 3.4 less DEGs (p<0.05).

Management notes that the genes evaluated are found to be crucial in the regulation of DNA repair and inflammatory reactions following solar and UV exposure.

What does this mean for CUV151?

The release highlights that for the overall XP-DNA Repair Program, the RNA sequencing results indicate that critical genes expressed after UV-damage can be positively affected with afamelanotide treatment.

For the general population, and specifically individuals with a fair skin type who easily burn in the sun, the results indicate that afamelanotide can reduce oxidative damage and inflammatory reactions after sun exposure and skin damage.

The ASX 300 healthcare stock's chief scientific officer, Dr Dennis Wright, was pleased with the results. He said:

The results from RNA sequencing complement the earlier results we saw from immunohistochemistry, in that afamelanotide consistently seems to assist repair of UV-damaged DNA in the skin.

Dr Wright revealed that the company plans to confirm these results in a final study. He said:

The significance of these results evaluating the use of afamelanotide in reducing oxidative and inflammatory damage caused by UV is high for those at high risk of solar damage, sunburn and skin cancers, hence we will repeat and confirm these results in a final study.

Despite today's strong gain, the Clinuvel share price remains down approximately 6% since this time last year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Scott Phillips.

More on Healthcare Shares

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

3 ASX companies that are global leaders

Numerous ASX companies have extended their reach beyond Australia to dominate in their fields.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Bell Potter just slapped a buy on this ASX 200 share offering a 30% return

Which stock is being tipped as a buy? Let's find out.

Read more »

Happy healthcare workers in a labs
Healthcare Shares

Macquarie initiates coverage of Neuren Pharmaceuticals shares; forecasts 45% upside

The broker described Neuren as a standout in the ASX biotech sector.

Read more »

A woman leans forward with her hand behind her ear, as if trying to hear information.
Healthcare Shares

Does Macquarie think Cochlear shares are a buy, hold, or sell?

Macquarie has released a new note on Cochlear following the company's FY25 profit guidance change.

Read more »

Stethoscope with a piggy bank in the middle.
Healthcare Shares

Up 18% this year, does Macquarie expect NIB shares to go higher?

This expert has a bold prediction for NIB.

Read more »

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

Why is the Mesoblast share price up 11% in June?

The ASX biotech share reached a 10-week high of $1.94 today.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

Up 51% since the tariff pain, is it too late to buy Pro Medicus shares?

After rocketing higher, is the ASX healthcare share still an opportunity?

Read more »

A woman wearing a yellow shirt smiles as she checks her phone.
Healthcare Shares

CSL shares push higher on US FDA approval

This biotech giant has been given a boost in the United States.

Read more »