Please ensure Javascript is enabled for purposes of website accessibility

Why DBV Technologies Stock Is Rising Today

By Prosper Junior Bakiny - Mar 12, 2021 at 3:54PM

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 company released its latest quarterly update, and investors liked what they saw.

What happened?

Shares of DBV Technologies (DBVT 7.06%) were trading higher on Friday following the company's release of its full-year 2020 earnings report. Much more important than its financial results, however, the company provided encouraging regulatory updates. As of 3:27 p.m. EST today, the stock was up by 13.2%.

So what

DBV Technologies is developing Viaskin Peanut, a potential peanut allergy treatment. Viaskin Peanut is a "peanut patch" that can stimulate a patient's immune system by gradually exposing the patient to increased amounts of peanut protein. The company submitted Viaskin Peanut for review to the Food and Drug Administration in August 2019. But in August 2020, the agency declined to approve the treatment because of concerns surrounding the effect of patch adhesion on its efficacy.

Woman turning down a bowl of peanuts.

Image source: Getty Images.

Thankfully, after a Type A meeting with the FDA (to resolve issues to allow the development of a drug to move forward), DBV Technologies said it would create a modified Viaskin Peanut patch that would not be considered a new product. Per the FDA's recommendation, the company would need to conduct safety and adhesion trials on the new patch.

Today, DBV Technologies announced that it has started a trial on healthy adult volunteers to test the adhesion of five modified Viaskin Peanut patches. The company's goal is to identify the best of the bunch. It said that all participants should complete the trial by March.

Now what

Investors can now clearly see a path forward for Viaskin Peanut in the U.S. market, which is excellent news for the company; it was probably the main catalyst behind DBV Technologies' gains on the stock market today. Of note, the healthcare company also submitted Viaskin Peanut for review in Europe back in November. Regulatory authorities there have not raised concerns regarding patch adhesion on Viaskin Peanut's efficacy.

If all goes well for DBV Technologies, the company could launch this product in both the U.S. and EU markets within the next couple of years or so.

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

DBV Technologies S.A. Stock Quote
DBV Technologies S.A.
DBVT
$1.53 (7.06%) $0.10

*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
344%
 
S&P 500 Returns
120%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

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

Premium Investing Services

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