Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Adaptimmune Therapeutics Stock Crushed It in May

By George Budwell - Jun 8, 2020 at 10:30AM

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 biotech continued its winning ways.

What happened

Adaptimmune Therapeutics ( ADAP 0.28% ), a clinical-stage biotech, saw its shares gain an astounding 230% over the month of May, according to data from S&P Global Market Intelligence. The biotech's shares took flight late last month following a presentation at the American Society for Clinical Oncology annual meeting highlighting the progress of its specific peptide enhanced affinity receptor (SPEAR) T-cell platform in solid tumors. 

So what

What appears to have gotten investors truly excited was the news that Adaptimmune's most advanced clinical candidate, ADP-A2M4, reportedly produced durable responses in patients with synovial sarcoma. That's important because the company plans to use the therapy's ongoing trial as the basis for an accelerated regulatory filing, perhaps as soon as next year.

Wooden blocks that spell out the word May.

Image source: Getty Images.

Adaptimmune's overarching goal, in effect, is to launch ADP-A2M4 as a novel treatment for synovial sarcoma by 2022. The company's timeline is aggressive, to be sure. But this positive early-stage data suggests that an accelerated regulatory filing may indeed be a real possibility.  

Now what

On the heels of this latest surge in its share price, Adaptimmune wisely decided to pull the trigger on a sizable public offering earlier this month. Specifically, the drugmaker said that it expects to bank a whopping $242.8 million from this offering after deducting the underwriting discount and other offering expenses.

Adaptimmune, in turn, appears to have enough cash to advance ADP-A2M4 all the way to a regulatory decision. So the company should be done with large capital raises for the time being, which is definitely good news for shareholders. Public offerings, after all, tend to halt the upward momentum of pre-revenue biotech stocks like Adaptimmune. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Adaptimmune Therapeutics plc Stock Quote
Adaptimmune Therapeutics plc
$3.59 (0.28%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.