Investors were optimistic on Wednesday, sending the Nasdaq Composite (^IXIC -0.62%) up a third of a percent as of 1 p.m. ET. Even with most market participants focused on monetary policy and the Federal Reserve, long-term investors kept their eyes squarely on positive developments for the fundamental businesses of strong, promising companies.
In particular, two Nasdaq biotech stocks were especially prominent on Wednesday. Kymera Therapeutics (KYMR -3.32%) enjoyed solid gains on news that a key partner wants to move forward with further clinical trials, and Avidity Biosciences (RNA -4.42%) enjoyed an even larger rise in its stock price as investors reacted favorably to encouraging candidate therapies.
Kymera gets the go-ahead
Shares of Kymera Therapeutics moved higher by 15% following the biotech company's release of clinical trial data from the phase 1 study of its KT-474 candidate treatment for skin conditions. Investors were pleased to see a path forward for the treatment, as Kymera and its development partner anticipate continuing the clinical trial process.
Kymera specializes in targeted protein degradation in order to deliver novel small molecule protein degrader medicines, and the results from its phase 1 clinical trial of KT-474 were positive. Performance of the treatment exceeded Kymera's expectations, showing a considerable positive effect in patients suffering from hidradenitis suppurativa and atopic dermatitis.
The news is important, because it marked the first use of a treatment that targets a particular protein-activated pathway in inflammatory diseases beyond the oncology arena. Superior performance to small molecule inhibitors could lead to advances in treating a number of other diseases as well.
With the test results, Kymera partner Sanofi (SNY 6.26%) committed to advance the KT-474 research program into phase 2 clinical trials. That's encouraging news for the biotech company, and with some interesting data on cancer-fighting treatments as well, Kymera is starting to get some positive attention.
Avidity soars on new trial data
Elsewhere, shares of Avidity Biosciences skyrocketed 60% at midday on Wednesday. The biopharmaceutical company announced a groundbreaking innovation in an early-stage clinical trial that could have long-term implications for the company and its investors.
Avidity has aimed to develop a new class of RNA-based therapeutic options that it calls antibody oligonucleotide conjugates, or AOCs. Its phase 1/2 Marina trial looked at its lead clinical candidate, AOC 1001, which seeks to treat a form of myotonic dystrophy by delivering small interfering RNA into muscle tissue.
The results were encouraging. Among the 38 participants in the study, 100% saw meaningful reduction in levels of the gene that's responsible for myotonic dystrophy, with an average reduction of 45% after just a single dose of the treatment. Other data showed that AOC 1001 activity reached the nucleus of targeted cells, with early signs of improvement in the myotonia itself after just one to two doses.
Avidity was quite pleased with the results, as they indicated not only early success with the particular goals of the trial but also evidence of proof of concept for muscular targeting of RNA therapies more broadly. With no currently approved therapies for this form of myotonic dystrophy, Avidity hopes to continue this trial despite a partial clinical hold on new participant enrollment. The company also anticipates moving forward with other clinical programs seeking to treat other diseases.
Longer term, Avidity has ambitious goals to treat not only muscle diseases but also broader areas in cardiac treatment and immunology. Investors should anticipate further stock price volatility, but if it can keep generating solid results, Avidity has intriguing prospects for biotech stock fans.