Panbela Therapeutics Inc. Sees Surge in Stock After FDA Approval

Shares of Panbela Therapeutics Inc. saw a significant increase on Tuesday following positive news from the U.S. Food and Drug Administration (FDA). The biopharmaceutical company, known as PBLA, announced on Monday that the FDA approved US WorldMeds’ new drug application for the use of eflornithine as a therapy for high-risk patients with neuroblastoma, a rare form of cancer in children.

Neuroblastoma is a cancer that originates from immature nerve cells and is responsible for almost 15% of pediatric cancer deaths. This recent development is a major breakthrough for patients suffering from this challenging disease.

Panbela had previously sold some of its assets in the eflornithine pediatric neuroblastoma program to US WorldMeds in July. This deal includes milestone payments for Panbela based on the development, approval, and sales of the drug.

Jennifer Simpson, Chief Executive of Panbela, expressed her excitement about the FDA approval, stating, “This approval is a prerequisite for considerable development milestone payments for Panbela as US WorldMeds continues its efforts to bring eflornithine to the market.”

As a result of this news, Panbela’s stock soared by an impressive 60.4% in midday trading on Tuesday, following a 121% increase on Monday. This amounts to a remarkable two-day gain of 254%.

The trading volume also experienced a significant surge, reaching a record-breaking 146.9 million shares on Monday. By midday on Tuesday, it had already reached 74.1 million shares, compared to the average daily volume of about 5.2 million shares.

Simpson further emphasized the potential impact of this FDA approval, saying, “This approval highlights the role polyamines can play in cancer therapy as we look forward to data from our ongoing programs in metastatic pancreatic cancer, colorectal cancer, non-small-cell lung cancer, and prostate cancer, as well as the advancement of pre-clinical programs in ovarian and multiple myeloma.”

Overall, the FDA approval of eflornithine as a therapy for high-risk neuroblastoma patients has brought significant attention and optimism to Panbela Therapeutics Inc. As the company continues its efforts to develop groundbreaking treatments for various types of cancer, investors and experts are eagerly anticipating further positive outcomes.

Panbela’s Struggles and the Recent Rally

Panbela, a company that has been facing challenges for years, recently experienced a notable two-day rally in its stock price. However, before this rally, the company’s situation was far from optimistic.

Quarterly and annual filings from Panbela consistently raised concerns about its ability to continue as a going concern, emphasizing the existence of “substantial doubt.”

To address its compliance with the Nasdaq’s minimum-bid listing requirement of $1, the company implemented two reverse stock splits in January and June of this year. These splits effectively boosted the stock price by 1,200. Nevertheless, the stock closed at its lowest point ever on Friday, at just 45.7 cents.

The stock’s year-to-date performance reflects a staggering decline of 99.5%.

Despite the recent rally reminiscent of “meme” stocks, the level of short interest, indicating bearish bets against the stock, is considerably lower in comparison.

According to the latest exchange data, short interest in Panbela’s stock represents only 0.86% of the shares available for trading by the public. In contrast, GameStop Corp.’s stock (GME) had a short interest equivalent to 23.88% of its public float, while AMC Entertainment Holdings Inc. (AMC) had a short interest of 11.4% of its float.