Cytori Therapeutics Inc. (NASDAQ:CYTX) leaped 32.85% in midday trading to $1.82 on April 10, after the U.S. Food and Drug Administration gave the green light for the company to conduct a pilot clinical trial for a cure to thermal burn injuries. The treatment, called the Cytori Cell Therapy, will be tested on up to 30 patients whose burns cover from 20% to 50% of their entire skin. This clinical trial, called RELIEF, is part of Cytori’s research and development work with US Department of Health and Human Services unit Biomedical Advanced Research and Development Authority, or BARDA. The RELIEF trial is slated to start contingent on necessary funding from BARDA.
The cell treatment method to be tested by Cytori Therapeutics Inc. (NASDAQ:CYTX) seeks to improve upon prevailing skin treatment techniques such as skin substituting, skin grafting, and dressing, all of which come with scarring, skin contracting, and prolonged pain. The therapy to be tested through the RELIEF trial could enhance the quality of wound healing for thermal burn victims, and has the potential to be a cost-effective treatment deployable even in cases of mass casualties where as many as 10,000 people could need medication. There is a significant market for the medication, given that the US recorded 450,000 burn injuries in 2013, including 40,000 cases that needed hospitalization.
What Does The Smart Money Sentiment Say?
According to our data, none of the 742 elite funds we track owned any shares of Cytori Therapeutics Inc. (NASDAQ:CYTX) at the end of Q4. However, Jim Simons of Renaissance Technologies established a new position when it bought 10,091 shares valued at $15,000 as of the end of December 2016. Meanwhile, Ken Griffin of Citadel investment Group established a new position when it bought 37,293 shares valued at $56,000.
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The Bottom Line
Traders are flocking Cytori Therapeutics Inc. (NASDAQ:CYTX) after the FDA approved its pilot clinical trial for a cure to thermal burn injuries. For more reading, check out top 10 deadly diseases cured in the 20th century.