Five Prime shares are blazing hot after the company obtains all three efficacy endpoints in the Global Phase 2 FIGHT trials.
The biotech firm, Five Prime Therapeutics, Inc. (FPRX) is soaring for a good reason as the company has achieved a great feat while obtaining all the three-efficacy endpoints of its gastric cancer vaccine, bemarituzumab, in the phase 2 trials.
Shares of the San Francisco firm more than quadrupled in the premarket on Wednesday as the stock kicked off the session as high as $22.51, a whopping 317% increase from the previous close price of $5.34.
FPRX continued the bullish momentum as it traded at its highest share price of $23.51 since November 2017. A quite significant surge drove the biotech firm by surprise.
The investors seem thrilled by the positive phase 2 results and are trading the stock in heavy volume today as it is up by 63 million at the moment.
As we write this at 12:06 A.M. EDT, FPRX was trading at $19.44 soaring by 264.04%.
Analysts going bullish
The positive top-line results from the global, randomized, double-blind placebo-controlled Phase 2 FIGHT trial have turned out to be the golden card for the company.
J.P. Morgan analyst, Eric Joseph updated the stock to neutral from underweight. The positive top-line data came as a surprise to Eric as they had low expectations from Five Prime.
On the other side, SVB Leerink analyst Jonathan Chang increased FPRX’s shares price target from $9 to $33. Chang highlighted the phase 2 trial update as a net positive and a big win for the stock in spite of low investor expectations previously. He thinks this update is really a great booster for FPRX.
Wedbush analyst Robert Driscoll tripled his price target from $9 to $28 mentioning that the consistency of data and other statical achievements increase the chances of the approval of Five Prime’s gastric cancer therapy, a potential approval for bema in FGFR2b-overexpressing gastric cancers.
Bemarituzumab: A potential gastric cancer treatment
The overwhelming response from the stock market has shown that the phase 2 data has proven to be a major milestone for the biotech. Bemarituzumab during the phase 2 trials was compared in combination with mFOLFOX6 chemotherapy, which obtained all three efficacy endpoints. The treatment underdevelopment is set to help gastroesophageal junction (GEJ) cancer patients.
The overall response rate improved by 13.1% while the median progression-free survival improved to 9.5 months from 7.4 months. The company is targeting to treat almost 30% of HER2- gastric cancers with Bemarituzumab all over the world.
The chief medical officer and vice president of Five Prime Therapeutics, Helen Collins stated:
“These results bring us one step closer to the first potential targeted therapy for advanced gastric cancer in over a decade.”
Five Prime Therapeutics, Inc. (FPRX) is looking forward to discussing the next steps with the health authorities worldwide.