Why Synta Pharmaceuticals Corp. Shares Skyrocketed
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.
While you can certainly make quick gains in red-hot biotech stocks, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.
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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.