Healthcare Business

Why Five Prime Therapeutics Stock Skyrocketed on Wednesday

Five Prime Therapeutics Inc. (NASDAQ: FPRX) shares more than tripled on Wednesday after the company announced positive topline results from its gastric cancer study.

The topline results came from the Phase 2 FIGHT trial that compared bemarituzumab (FPA144) in combination with mFOLFOX6 chemotherapy to placebo in combination with mFOLFOX6. The trial was conducted in patients with fibroblast growth factor receptor 2b-positive (FGFR2b+), HER2-negative front-line advanced gastric or gastroesophageal junction cancer.

All three efficacy endpoints in the trial were achieved: progression-free survival (PFS), overall survival (OS), and overall response rate (ORR).

Median PFS improved from 7.4 months in the placebo arm to 9.5 months in the bemarituzumab arm. Median OS improved from 12.9 months to not reached. In addition, the ORR improved by 13%.

Five Prime noted that the Phase 2 FIGHT trial results validate the importance of the novel target FGFR2b, which is overexpressed in approximately 30 percent of HER2- gastric cancers worldwide.

Management noted that these results bring the firm one step closer to the first potential targeted therapy for advanced gastric cancer in over a decade. Management further commented that it was excited about the results of the FIGHT trial and the opportunity to advance bemarituzumab, the first and only investigational treatment for patients with FGFR2b+ tumors, to the next phase of development.

Five Prime Therapeutics stock traded up 261% to $19.27 on Wednesday, in a 52-week range of $1.75 to $24.00. The consensus price target is $8.50.