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Many Nasdaq shares were in the red this morning, but not First Wave BioPharma (NASDAQ:FWBI) Inventory. Indeed, shares of First Wave rose significantly after the company announced an addition to its intellectual property (IP) portfolio governing a proprietary drug called adrulipase. If all goes according to plan, it won’t be long before First Wave begins a Phase 2 clinical trial for Adrulipase.
Florida-based First Wave BioPharma is a biotechnology company developing therapies for gastrointestinal (GI) diseases. Adrulipase is an enzyme administered in capsule form. It is intended to treat exocrine pancreatic insufficiency () associated with cystic fibrosis ( ) and chronic pancreatitis ( ).
According to the Cystic Fibrosis Foundation, there are more than 30,000 patients in the United States with EPI caused by cystic fibrosis. Additionally, the National Pancreas Foundation estimates that there are approximately 90,000 patients in the United States with EPI caused by CP.
First Wave BioPharma seeks to expand its portfolio of intellectual properties governing adrulipase. To that end, the company “has filed a provisional United States patent application involving improvements in the composition of matter designed to improve the delayed release profile of adrulipase.”
What’s going on with FWBI shares?
FWBI stock rebounded over 40% this morning and even touched $7 at one point. However, it pulled back somewhat and was up 30% as of 11:00 a.m. EST.
Marketers today are obviously reacting to the strides that First Wave BioPharma has made in advancing adrulipase. If First Wave is able to improve the delivery mechanism of adrulipase, and then protect the company’s rights to that improvement, it could benefit patients, the company, and shareholders.
Additionally, First Wave BioPharma management is ambitiously advancing adrulipase into 2023. Upon obtaining Investigational New Drug (IND) status from the U.S. Food and Drug Administration (FDA), First Wave BioPharma plans to initiate a phase 2 trial for adrulipase early part of this year.
So, could this be a first wave of investor enthusiasm for First Wave BioPharma? Anything is possible on Wall Street, so keep an eye out for future developments with adrulipase and with FWBI stocks.
As of the date of publication, David Moadel had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.