Cellectar Biosciences Inc (NASDAQ:CLRB) Rockets Higher

Shares of Cellectar Biosciences Inc (NASDAQ:CLRB) rocketed higher on Friday after the company announced that the U.S. Patent and Trademark Office had assigned and published identification numbers for the company's patent applications covering composition of matter and method of use for its phospholipid drug conjugates, its core technology. Over 41m shares changed hands as the momentum crowd piled into the latest microcap runner. Some of the money that was trading MGT Capital Investments Inc (NYSEMKT:MGT) was no doubt looking to keep their winning streak alive.The situation with CLRB was a perfect storm for momentum players. Shares were trading at 52 week lows with a low float and a sizable short position. Positive news was all that was needed and it combined to create a perfect storm for traders. Besides momentum traders, algorithms picked up on the news and came in trading the stock over and over. Investors are now asking if the momentum players will stay in the stock and keep trading CLRB.Cellectar Biosciences says that it "is developing phospholipid drug conjugates (PDCs) designed to provide cancer targeted delivery of diverse oncologic payloads to a broad range of cancers and cancer stem cells. Cellectar's PDC Delivery Platform is based on the company's proprietary phospholipid ether analogs. These novel small-molecules have demonstrated highly selective uptake and retention in a broad range of cancers. Cellectar's PDC pipeline includes product candidates for cancer therapy and cancer diagnostic imaging. The company's lead therapeutic PDC, CLR 131, utilizes iodine-131, a cytotoxic radioisotope, as its payload. CLR 131 is currently being evaluated under an orphan drug designated Phase 1 study in patients with relapsed or refractory multiple myeloma. The company is also developing PDCs for targeted delivery of chemotherapeutics such as paclitaxel (CLR 1602-PTX), a preclinical stage product candidate, and plans to expand its PDC chemotherapeutic pipeline through both in-house and collaborative R&D efforts."The patent news will protect both composition of matter and method of use for those phospholipid drug conjugates, or PDCs, developed with Cellectar’s proprietary phospholipid-ether delivery vehicle conjugated with any existing or future cytotoxic agents, including chemotherapeutics such as paclitaxel, for targeted delivery to cancer cells and cancer stem cells. CEO Jim Caruso said:

“When issued, these patents will provide Cellectar and potential partners with intellectual property (IP) protection through approximately November 2036, providing significant runway for product development and commercialization. This expanded IP protection supports the value-optimizing potential of our CLR CTX chemotherapeutic program and we look forward to providing ongoing updates as we continue to advance this R&D program.”

This latest news follows the good news that CLRB is in compliance with all requirements for continued listing on The Nasdaq Capital Market and, accordingly, the previous listing qualifications matter had been closed. This was great news as the NASDAQ listing keeps institutional investors in the stock and CLRB avoids being delisted to the OTC Markets.Earlier this month, CLRB reported earnings which showed that during the first quarter of 2016, the company reported research and development expenses of $1.0 million, a reduction of $0.6 million from the first quarter of 2015. Cellectar’s general and administrative expenses for first quarter 2016 totaled $1.0 million, similar to the prior year period. Loss from operations was $2.0 million, compared to $2.6 million during the same period last year. The company ended the first quarter with $1.9 million in cash and cash equivalents, compared to $3.9 million in cash and cash equivalents on December 31, 2015. CLRB completed a $7.2 million capital raise after the first quarter ended, so the company is well funded going forward.CLRB proved that it has microcap runner in its blood. We think the patent news is the first of many more positive news announcements to come from the company. We think the worst is behind the company and a bull run is just getting started. In the short run, we expect the stock to pull back a little as some of the momentum players book profits. We will be updating Insider Financial as soon as we know more. For continuing coverage on CLRB, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in CLRB and have not been compensated for this article.