Shares of Sellas Life Sciences Group (NASDAQ:SLS) rose by 3.7% to $1.24 on Wednesday, buoyed by positive preclinical data for its experimental cancer drug, SLS009.
The company announced that the drug showed strong efficacy in treating solid tumors with mutations in the ASXL1 gene, a promising development in the fight against certain genetic forms of cancer.
The encouraging results come on the heels of the U.S. Food and Drug Administration (FDA) granting SLS009 "orphan drug" status late last year.
This designation, given to treatments for rare diseases, offers a range of incentives, including market exclusivity and funding for clinical trials, should the drug proceed to market approval.
Including Wednesday's gains, Sellas' stock has climbed 16.5% year-to-date, signaling investor optimism around the company's oncology pipeline and the potential of SLS009 in treating rare cancer subtypes.