Today, most of Wall Street is watching Tempest Therapeutics (NASDAQ:TPST). This little-known clinical-stage oncology company has gone from trading at 30 cents per share 24 hours ago to its current share price of $6.40. A gain of more than 2,000%! This kind of price action is quite impressive. These gains might call to mind a short squeeze, especially given that TPST stock traded as a microcap penny stock until just a few hours ago. But as it turns out, this company is actually surging on a positive catalyst.

Tempest recently reported positive trial results from a leading liver cancer treatment drug candidate. To say that the market is reacting well would be an understatement. As InvestorPlace‘s Eddie Pan reports:

“This morning, the cancer therapies company reported positive results for its TPST-1120 drug candidate in its randomized Phase 1b/2 clinical study. Tempest also announced that its board of directors had adopted a limited-duration stockholder rights plan, which is effective immediately. The plan seeks to protect shareholders from an unwanted takeover. It is also known as a poison pill plan.”

It makes sense that positive trial results would send a biotech stock up. But gains of this magnitude are unprecedented. This warrants a closer look into this mysterious company and the forces driving it so far up. Let’s dive into Tempest Therapeutics and the recent trial.

What TPST Stock Investors Need to Know

1. Founded in 2011, Tempest Therapeutics is based in Brisbane, California. It deals primarily in developing treatments for cancer patients.
2. Tempest conducted the study that sent TPST stock up in conjunction with Swiss healthcare company Roche Holdings AG (OTCMKTS:RHHBY), and its stock is also rising today.
3. Results have been highly promising so far. Fierce Biopharma reports that “Tempest’s PPAR-α antagonist offered a lifeline for patients with unresectable or metastatic hepatocellular carcinoma when added onto two Roche drugs in a phase 1/2 trial.”
4. The outlet confirms that patients who received the “triple treatment” demonstrated a 30% objective response rate (ORR), while patients who had received only the first two displayed a 13.3% ORR.
5. Tempest is also testing against other types of tumors to measure its effectiveness in combating other cancers.
6. This morning, Tempest announced a limited-duration stockholder rights plan, which went into effect immediately. However, it emphasized that this plan should not be seen as a response to a takeover threat.
7. The company has been making changes at the management level this month. In late September 2023, it announced that the role of Sam Whiting, M.D. Ph.D, Chief Medical Officer and executive vice president would be expanded to include the title of head of research and development as well.

On the date of publication, Samuel O’Brient 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.comPublishing Guidelines.