Mustang Bio shares surge 13.08% premarket after FDA grants orphan drug designation for brain cancer therapy.

Mustang Bio Inc. (NASDAQ:MBIO) surged 13.08% in premarket trading following the U.S. Food and Drug Administration’s granting of Orphan Drug Designation to its investigational therapy MB-101 (IL13Ra2-targeted CAR T-cells) for treating astrocytomas and glioblastoma. This regulatory milestone, announced on July 7, 2025, provides the company with potential tax incentives, expedited review pathways, and seven years of market exclusivity if approved, bolstering investor confidence in its pipeline. The news aligns with the stock’s upward trajectory, as multiple outlets highlighted the designation as a key catalyst for the biotech firm’s cell therapy advancements.