Hype Over a New Cancer Drug Has Its Company’s Stock Spiking

Results from a small trial of a new oral cancer drug have shown preliminary success, and shares for the company that makes it have already spiked in response.

The drug, larotrectinib, worked across various different cancers in both adults and children, according to the results. The study of 55 patients was presented at the American Society of Clinical Oncology’s (ASCO) Annual Meeting on Sunday but it has not yet been peer reviewed, according to ASCO.

Seventy-six percent of patients with 17 different types of cancer had tumor shrinkage, and after 12 months, 79% of the responsive patients did not report cancer progression. That does not mean that it improved the lifespan of or the quality of life for the cancer patients, as those were not the end results studied here.

The company Loxo Oncology funded the study for its drug, and its stocks jumped by more than 40% by Monday, indicating investor excitement about a potential new cancer treatment.