Aveo Pharmaceuticals Inc. (NASDAQ: AVEO) has been on a roller coaster for the past few months. Previously Aveo made a 50% run in May after it released details regarding its study of renal cell carcinoma — kidney cancer. On top of the move being enormous, over 94 million shares were traded that day.
Aveo also announced in May that the final results from its Study 902 will be presented at the 2015 American Society of Clinical Oncology (ASCO) Annual Meeting. This study included patients with advanced renal cell carcinoma (RCC) who received tivozanib as a second-line treatment subsequent to disease progression on sorafenib in the company’s Phase 3 TIVO-1 first-line RCC study.
The big driver here is that Aveo’s prior report of interim median progression-free survival (PFS) results of 8.4 months among the 163 patients enrolled in Study 902 was too low. Aveo’s final results have now indicated that there is a median PFS in this setting of 11.0 months. Even better, the median overall survival was 21.6 months.
The stock took another jump during the ASCO conference presentations, where it posted solid gains from the $2 price level to current prices. It was a more subtle move this time, and some investors might have overlooked it.
In a sense the stock is double dipping on the same news, but the reasoning behind the gains in Thursday’s trading session was tivozanib’s approval in Europe. Aveo announced that it has received written confirmation of support from the Rapporteur and co-Rapporteur for the filing of such a Marketing Authorization Application (MAA) for tivozanib in Europe.
Shares of Aveo closed Thursday up 6.5% at $2.47. The stock has a consensus analyst price target of $2.00 and a 52-week trading range of $0.61 to $3.50.