Shares in US-based biotech firm Forte Biosciences surged nearly 40% in early trading today after the company announced positive results from a mid-stage clinical trial of its lead eczema treatment. The stock jumped to around $2.80, marking its biggest single-day gain in over a year, as investors cheered the data which showed a statistically meaningful reduction in skin inflammation and itching compared to placebo.
The trial, known as a Phase 2 study, enrolled patients with moderate-to-severe atopic dermatitis, a chronic skin condition affecting millions worldwide. Forte said the treatment met its primary endpoint, with a significant proportion of patients achieving clear or almost clear skin after 12 weeks. Analysts noted that while the data is early, it positions Forte as a potential competitor in the crowded eczema market, which includes established drugs from Sanofi and Pfizer.
For UK investors, the rally is a reminder of the volatility inherent in small-cap biotech stocks. While Forte is listed in the US, its shares are accessible through some UK brokerage platforms and ETFs. The broader FTSE 100 edged up 0.2% today to 8,312, with the FTSE 250 adding 0.3% to 20,445, as steady commodity prices and a weaker pound supported the index. However, the main action remained in the biotech space, where Forte's gains outpaced the sector.
Analysts at Jefferies described the results as 'encouraging but early', cautioning that larger Phase 3 trials would be needed to confirm efficacy and safety. 'This is a classic binary event for a development-stage biotech,' said one London-based healthcare analyst. 'The data de-risks the asset somewhat, but investors should be aware that regulatory hurdles and commercialisation costs remain significant.'
The eczema treatment market is estimated to be worth over £15 billion globally, driven by rising diagnosis rates and demand for better therapies. If Forte's drug eventually reaches the market, it would compete with injectable biologics and newer oral medications. For now, the company plans to meet with regulators to discuss next steps, with a larger trial expected to begin later this year.