Tempest Therapeutics (NASDAQ:TPST) is the stock to watch for today, as its shares are up by a staggering 1,500%. 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.
Regarding the therapy results, President and CEO Stephen Brady said the following:
“First-line HCC remains an indication with substantial opportunity to improve patient outcomes and, based upon these data, we are excited about the opportunity to move TPST-1120 into a pivotal study. Given these new data and the Phase 1 evidence of activity beyond HCC, we look forward to advancing discussions with potential partners who share our vision for TPST-1120.”
TPST Stock: Tempest Reports Positive Results, Stockholder Rights Plan
Tempest disclosed that new data showed that its TPST-1120 drug performed better in combination with cancer drugs Avastin and Tecentriq, which are owned by Roche Holdings (OTCMKTS:RHHBY), in comparison with just the two drugs alone. The TPST-1120 triplet arm showed a confirmed objective response rate (cORR) of 30%, compared with a cORR of 13.3% for the Avastin/Tecentriq control arm.
Meanwhile, Tempest’s new stockholder rights plan provides each outstanding share with a dividend of one right. Each right can only be exercised in the event of a person or group acquiring a 10% or more stake of the company through a tender or exchange offer.
“Any stockholders with beneficial ownership of the Company’s outstanding common stock above the applicable threshold as of the time of this announcement are grandfathered at their current ownership levels but are not permitted to increase their ownership without triggering the Rights Plan,” explained Tempest.
When a right is exercised, it will provide the shareholder the right to purchase “for $25.00, additional shares of the Company’s common stock having a market value of twice such exercise price.” The rights plan will expire on Oct. 10, 2024, or Oct. 10, 2026, upon shareholder approval. Tempest disclosed that it did not adopt this plan in response to a specific or immediate takeover threat.
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On the date of publication, Eddie Pan did not hold (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.
