Today, retail investor favorite Oncova Therapeutics (NASDAQ:ONTX) is once again on a roll. Shares of ONTX stock are more than 30% higher at the time of writing on very heavy volume.
Indeed, today’s price action in the overall markets has been extremely bullish. Each of the three major indices have recovered more than 1%, following a series of daily drops that gave some investors heartburn. Of course, some cooling off is healthy, given how red-hot the market has been lately. That said, speculative growth stocks such as Oncova appear to be right in the wheelhouse of investors today, as risk-on sentiment takes hold.
For Oncova, a clinical-stage biopharma company focused on developing cancer drugs, big daily moves are typically the result of some sort of announcement. Today is no different.
Let’s dive into what Oncova announced and why investors are jumping into ONTX stock in a big way today.
Positive Clinical Data for Lung Cancer Drug Boosting ONTX Stock
Today, Oncova announced some encouraging results for the company’s oral rigosertib drug aimed at non-small-cell lung cancer. In combination with immune checkpoint inhibitor nivolumab, patients with advanced non-small-cell lung cancer showed “an early sign of activity.”
Given that these are still early days, and these preliminary Phase 1/2a trial data are to be taken with a grain of salt, the fact that some efficacy has been shown is a massive positive for Oncova. Being able to continue down the path of clinical trials and make progress toward an FDA (Food and Drug Administration) approval is always a good announcement. Today, investors agree.
The company reports that the “data supports further development of rigosertib,” with expectation that trials will continue. Oncova notes that the company’s rigosertib drug was well-tolerated, and the positive results that have been shown were largely among a group of patients that failed prior lines of therapy in the past.
Indeed, these results do appear to be positive for investors in this biopharma stock. While significant risk remains with investing in early stage pharma plays like Oncova, the reward potential with these stocks is also incredibly high. Accordingly, investors appear willing to take on this risk today, as sentiment remains extremely bullish.
On the date of publication, Chris MacDonald 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.