Why Synta Pharmaceuticals Corp. Shares Skyrocketed

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of biotechnology company Synta Pharmaceuticals Corp.  soared a whopping 43% today, after results from a mid-stage study of its drug ganetespib in breast cancer patients warranted an expansion of the study.

So what: Synta said that ganetespib helped enough patients with triple-negative breast cancer to support a second stage of the trial, reinforcing optimism over the drug's blockbuster potential of treating different types of cancers. In fact, according to the American Cancer Society, triple-negative breast cancer is particularly fast-spreading and difficult to treat, so the surprising results should help Synta garner some big-pharma partnership support as well.  

In the next stage of the trial, Synta will also evaluate ganetespib in combination with a weekly cancer drug called paclitaxel.

"The favorable safety profile, clear single-agent clinical activity, and strong rationale for combination therapy suggest ganetespib may have broad potential utility in breast cancer," said Vice President of Clinical Research Dr. Iman El-Hariry.

So while Synta remains just too volatile for average investors (the stock is still off about 40% from its 52-week highs even with today's surge), biotech experts might want to follow the story more closely.      

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The article Why Synta Pharmaceuticals Corp. Shares Skyrocketed originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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