Promising Leukemia Drug Boosts Micromet

Shares of Micromet (NASDAQ: MITI), a biopharmaceutical company based in Rockville, Maryland, closed up 8.7% Friday.

In a press release, the company said research suggests that its new antibody agent called blinatumomab, may be a useful weapon against acute lymphoblastic leukemia (ALL).

Blinatumomab is the first new agent in nearly 30 years to be introduced for the treatment of relapsed ALL. A study of ALL patients who had relapsed following standard therapy showed that blinatumomab produced complete remission in 9 of 12 patients. This research is preliminary; Micromet has not yet revealed plans to market the drug in the United States.

Micromet has a P/E ratio of 12.3 and has reported narrower-than-expected net losses in three of the past four quarters. Analysts on average recommend buying the stock, and they have mean price target of $10.04 per share on it.

Shares ended the week at $5.75. But the stock has underperformed the biotechnology industry average, as well as competitor Biogen Idec (NASDAQ: BIIB), since the beginning of the year.