Top-notch biotech stock Dyne Therapeutics broke out Monday after the company unveiled promising test results for a pair of muscular dystrophy treatments.
Dyne studied drugs it calls DYNE-101 and DYNE-251 in patients with myotonic dystrophy type 1 and Duchenne muscular dystrophy, respectively. Both are muscle-wasting diseases.
Patients with myotonic dystrophy showed improvements in myotonia — a condition that slows how fast the muscles can relax after use — and muscle strength. They also improved on functional tests. The Duchenne group showed similar improvements, including how fast they could rise from the floor and walk or run 10 meters.
Dyne stock catapulted 27.8% to 35.38. Shares hit a record high, topping a buy point at 30.27 out of a consolidation, according to MarketSurge. The biotech stock's relative strength line also launched to a new high.
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The biotech company tested several doses of DYNE-101 in patients with myotonic dystrophy type 1 over three, six and 12 months.
Myotonic dystrophy type 1 is caused by a genetic defect that splices multiple proteins — meaning a key part of the protein has been removed. On average, 27% of the splicing errors were corrected after three months of treatment with high-dose DYNE-101.
Further, patients had a 3.1- to 4.5-second improvement in myotonia, depending on the dose. Patients also showed improvements in muscle strength and fatigue levels, the 10-meter walk or run test, and a test of how long it took them to sit and stand five times.
In Duchenne muscular dystrophy, patients don't make enough, or any, of the dystrophin protein that helps keep muscles intact. Dyne compared the results of DYNE-251 to Sarepta Therapeutics' approved treatment, Exondys 51. After six months, DYNE-251 recipients reached higher levels of dystrophin than patients in a separate study of Sarepta's Exondys 51.
Dyne stock, which has already more than doubled this year, added again on Monday following the data release. The biotech stock has a nearly perfect Relative Strength Rating of 98, putting it in the top 2% of all stocks when it comes to 12-month performance, according to IBD Digital.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
