In a topsy-turvy session today, investors may be intrigued by some of the biggest gainers and decliners as most stocks hold around the flat line. Among the leaders in terms of percentage gains today is biotech company Ambrx (NYSE:AMAM), which has absolutely skyrocketed today. Shares of AMAM stock traded more than 600% higher early in today’s session. They have since settled down to gains of approximately 440% as of 1:30 pm EST.
This move follows a key announcement from the company around data released for its breast cancer drug ARX788. Early safety and efficacy data suggest that patients who are resistant or refractory to tucatinib-containing regiments saw a 100% disease control rate (DCR) and 51.7% overall response rate (ORR).
Overall, these numbers are very impressive. These sorts of data suggest that the company’s research and development process has resulted in what could be a big winner. Accordingly, given the size and importance of the breast cancer market, investors are jumping into this stock in a big way today.
Let’s dive into whether AMAM stock is still a buy following this massive rally.
Is Now the Time to Load Up on AMAM Stock?
It’s worth noting that the data released today are preliminary. Additionally, these data are tied to a Phase 2 study of the company’s key treatment. Accordingly, Phase 3 trials will need to be conducted before regulatory approval can be granted.
That said, this rather significant study, which spanned more than seven months for most patients, has shown very positive results. Given the staggering safety and efficacy data presented, it’s likely the company will attempt to fast-track this drug. For investors, this could mean a quicker path to profitability, something that all biotech investors are after.
“This preliminary safety and efficacy data in a heavily pretreated population further reinforces our view of the stability and precision underlying Ambrx’s proprietary drug-linker and site-specific conjugation technology for ADC design,” said Daniel O’Connor, Chief Executive Officer of Ambrx. “Our unique approach offers highly differentiated biologic design so that we can work towards providing better outcomes for patients with difficult-to-treat cancers.”
Those looking for a higher-risk, higher-upside bet certainly have an intriguing option to consider in the biotech space. This rally has been significant, but it’s worth noting that Ambrx still only trades at a market capitalization of below $100 million. Accordingly, if this drug is a success, there could be plenty of upside from here still.
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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.