Benzinga | Apr 14, 2021 09:38AM EDT

Moleculin Biotech Stock Is Trading Higher After WP1066 Scores Rare Pediatric Disease Tag For Type Of Brain Tumor

* The FDA has granted Rare Pediatric Disease Designation to Moleculin Biotech Inc's (NASDAQ: MBRX) WP1066 to treat ependymoma.

* Ependymoma is a rare type of tumor in the brain or spinal cord and most often occurs in young children.

* The drug candidate currently received Orphan Drug Designation for WP1066 to treat brain tumors and Rare Pediatric tags for three other pediatric indications.

* Rare Pediatric Disease designation provides for the issuance of a priority review voucher following FDA approval. The voucher can be used for accelerated approval of a future application or sold to a third party.

* WP1066 is an immune/transcription modulator capable of directly inhibiting certain key oncogenic transcription factors, including the activated form of a protein known as STAT3.

* The activated form of STAT3, referred to as p-STAT3, is considered a master regulator of tumor activity.

* Price Action: MBRX shares are trading 6.96% higher at $3.87 on the last check Wednesday.