Infinity Pharmaceuticals (NASDAQ:INFI) has seriously been a big mover this week, taking investors in the biotech name on a wild ride. After dropping more than 30% on Tuesday, INFI stock is up nearly 50% in intraday trading. So what do you need to know about this company? And what explains the change in direction?
For those unfamiliar with Infinity, the Massachusetts-based company focuses on novel cancer treatments. Its lead candidate is IPI-549, or eganelisib, which is in a variety of clinical trials. The company thinks this candidate could work in treating forms of breast and ovarian cancers, as well as solid tumors.
This candidate is also responsible for recent price moves. Yesterday, the company shared updates from its MARIO-275 and MARIO-3 trials. The first, which examined eganelisib as part of a combination treatment for urothelial cancer, was more promising. The second, which examined the candidate as part of a combination treatment for triple-negative breast cancer, underwhelmed investors. Why? Infinity was working with Roche (OTCMKTS:RHHBY) in the second study, pairing eganelisib with Tecentriq. Although the latest results showed tumor reduction in roughly 86% of participants, they did not wow compared to past findings.
Investors should note that Infinity also reported quarterly earnings yesterday. The company beat earnings per share and revenue estimates, posting a loss of 13 cents and revenue of $510,000.
On Tuesday at least, this combination of headlines had investors tired of INFI stock, leading to the selloff. However, things appear to be changing today.
The News That Has INFI Stock Rebounding Today
So where does the newfound confidence in INFI stock come from?
It appears Infinity fans can thank a new analyst upgrade that came this morning. Nick Abbott and Chuck Whitesell of Wells Fargo wrote today that the drop yesterday created a good buying opportunity, particularly ahead of more data. They upgraded the stock from “equal weight” to “overweight” and raised their price target from $4 to $14. That implies more than 800% upside from the last closing price.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Sarah Smith is the Editor of Today’s Market with InvestorPlace.com.