Shares of Global Blood Therapeutics (NASDAQ:GBT) closed at $35.02 on Wednesday, up 7.9% from the day before and rebounding two days after the stock hit a 52-week low at $31.90.
The move is simply a correction to an overcorrection as investors saw a bargain available once the stock hit its two-year low. The company's stock has been sluggish since a first-quarter report that fell below analysts' expectations. While the company reported revenue of $39 million, up 176% year over year, it lost $1.21 per share compared to the same period in 2020.
However, the company just got good news this month concerning its lead drug Oxbryta (voxelotor). On June 14, the drug received Promising Innovative Medicine designation in the United Kingdom as a potential therapy for hemolytic anemia for patients 12 or older with sickle cell disease (SCD).
The next step for the company will be getting European Medicines Agency approval for Oxbryta for SCD patients 12 and older.
Global Blood Therapeutics is also hoping to expand the label for Oxbryta in the United States as a treatment for patients between 4 and 14 years old for sickle cell disease. Currently, the drug is approved only for SCD patients 14 and older in the U.S.
The company is also advancing in its pipeline another SCD drug, inclaclumab, which the company said is a possible treatment to reduce vaso-occlusive crises, a painful side effect of SCD. The company said it hopes to launch additional clinical trials for the drug midway in the first half of 2021.
Another key will be the company's second-quarter report as investors will be watching to see if the company can continue to build on revenue.