SURF Stock Price Increases 12.33% Pre-Market: Why It Happened

By Amit Chowdhry ● February 23, 2021
  • The stock price of Surface Oncology Inc (NASDAQ: SURF) increased by 12.33% pre-market. This is why it happened.

The stock price of Surface Oncology Inc (NASDAQ: SURF) increased by 12.33% pre-market as it went from a closing price of $9.08 to $10.20 as of 4 AM ET. Investors appear to be responding to a couple of catalysts.

Vaccinex — a clinical-stage biotechnology company pioneering a differentiated approach to treating cancer and neurodegenerative disease through the inhibition of SEMA4D — recently announced that Surface Oncology will be exercising its option to license the anti-CCR8 antibody discovered via Vaccinex’s ActivMAb antibody discovery and novel viral display platform. And the antibody SRF114 is a fully human IgG1 anti-CCR8 antibody that selectively depletes immuno-suppressive tumor T regulatory cells (Tregs) while sparing peripheral Tregs. 

The terms of agreement with Surface Oncology provided that Surface Oncology pay technology access and licensing fees in addition to research funding and that Vaccinex will qualify for development milestone payments and royalties.

“We are thrilled to continue building on the recent success of our ActivMAb platform with the announcement of our licensing deal with Surface Oncology,” said Vaccinex chief scientific officer Ernest Smith. “The presence of Treg in human tumors is associated with resistance to immunotherapy and blocking CCR8 has been demonstrated to potentiate inhibition of tumor growth in animal studies. Data presented at SITC 2020 demonstrated that SRF114 specifically binds to human CCR8 and induces Treg destruction through antibody-dependent cellular cytotoxicity. We are pleased to have played a part in the development of this promising drug candidate and look forward to following continuing development of SRF114 and further interactions with Surface Oncology.”

Investors also appear to turn their attention to Surface Oncology following an in-depth report by Seeking Alpha:

“Surface is an intriguing early stage developmental company. On the plus side, it has several ‘shots on goal’ in development. Having collaboration deals with two major drug makers is also a big vote of confidence in the potential value of its developmental platform. The recent deal with Glaxo also extends its cash runway significantly. Analyst support seems solid right now as well.”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.