Why Is First Wave BioPharma (FWBI) Stock Up 30% Today?

Many Nasdaq stocks were in the red this morning, but not First Wave BioPharma (NASDAQ:FWBI) stock. Indeed, First Wave shares were up substantially 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 commences a Phase 2 clinical trial of adrulipase.

Based in Florida, First Wave BioPharma is a biotechnology company that develops therapies for gastrointestinal (GI) diseases. Adrulipase is an enzyme that’s administered as a capsule. It’s meant to treat exocrine pancreatic insufficiency (EPI) associated with cystic fibrosis (CF) and chronic pancreatitis (CP).

According to the Cystic Fibrosis Foundation, there are more than 30,000 patients in the U.S. with EPI caused by CF. Furthermore, the National Pancreas Foundation estimates that there are around 90,000 patients in the U.S. with EPI caused by CP.

First Wave BioPharma is seeking to expand its IP portfolio governing adrulipase. To that end, the company “filed a U.S. Provisional Patent application involving composition of matter improvements designed to enhance adrulipase’s delayed release profile.”

What’s Happening With FWBI Stock?

FWBI stock rallied more than 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. Eastern.

Today’s traders are evidently responding to the progress that First Wave BioPharma is making 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, this could benefit the patients, the company and the shareholders.

Moreover, First Wave BioPharma’s management is ambitiously advancing adrulipase in 2023. Upon the clearance of Investigational New Drug (IND) status by the U.S. Food and Drug Administration (FDA), First Wave BioPharma expects to initiate a Phase 2 trial for adrulipase in the early part of this year.

So, could this be a first wave of investor excitement for First Wave BioPharma? Anything’s possible on Wall Street, so keep an eye out for further developments with adrulipase and with FWBI stock.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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