Why Janux Therapeutics stock surged today as markets fell

Clinical stage biotechnology Yanux Therapeutics (JANX 11.47%) It was a title that stood out on a gloomy Wednesday in the stock market. Bulls piled on the company’s stock over a report that the company could be put up for sale while investors fretted about an unfavorable inflation report from the federal government. As a result, prices closed the day up nearly 12%. This is in sharp contrast to the close, which fell almost 1%. S&P 500 index.

Are you putting up a for sale sign?

Bloomberg reports that Janux executives are considering several options for the future. Some of them are available for sale. Citing unidentified “people with knowledge of the matter,” Bloomberg added that this follows expressions of interest from big pharmaceutical companies eager to acquire clinical-stage biotechs.

According to the financial news agency’s sources, Janux has hired financial advisors to evaluate these options. The source emphasized that there is currently no guarantee that the company will pursue any of these.

Janux is a fast-rising star in biotechnology. Companies focused on cancer treatment are developing technology around “T cell engagers” (TRACTrs), which essentially harness the body’s immune system to fight cancer tumor cells. Recently, phase 1a tests for two treatments showed very encouraging results, and investors piled into the stock.

So, if the company is sold, it will certainly be sold to a well-funded company, so there is a mention of a well-capitalized pharmaceutical company.

Watch this space for more details.

Janux has yet to comment on the Bloomberg report and, as usual, such an event is unlikely to occur under these circumstances. It’s entirely realistic to think that Big Pharma is scrambling to buy assets quickly, if not cheaply, that could deliver promising cancer treatments all at once. This is a story in biotechnology that is worth watching for new developments.