Why Immunomedics' Stock Spiked Today

By George BudwellFool.com

What: Shares of Immunomedics , a small-capantibody-based therapeutics company developing treatments for cancer and autoimmune diseases,briefly rose by as much as 21% today on heavy volume. The stock's rapid rise was triggered by a positive clinical update for the company'slead antibody-drug conjugate (ADC),sacituzumab govitecan, in a midstage study for relapsed or refractory metastatic lung cancer.

Per the press release, an interim analysis based on 57 patients, that included 28 non-small-cell lung cancer (NSCLC) and 29 small-cell lung cancer (SCLC) patients, suggested that the drug was exhibiting a noteworthy therapeutic signal in a heavily pre-treated group of patients.

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Digging into the details, Immunomedics said that about a third of both NSCLC and SCLC patients receiving doses less than or equal to12 mg/kg exhibited objective responses. The small groups of NSCLC and SCLC patients receiving the10 mg/kg dose were also showing an interesting trend in terms ofmedian progression-free (PFS) survival as well. The company plans on adding more patients to this dosage cohort going forward to further assess PFS and overall survival.

So what: Immunomedics' shares took a beating earlier this year afterits licensing partner UCB announced that epratuzumab failed to meet its primary endpoint in a late-stage study for lupus. This failure put the onus squarely on90Y-Clivatuzumab tetraxetan, as a potential treatment for pancreatic cancer,to create value to shareholders in the near-term. With sacituzumab govitecan now showing some compelling midstage results in the metastatic lung cancer arena, Immunomedics' pipeline once again has a couple of interesting clinical candidates that could drive shares higher in the short to intermediate future.

Now what: Immunomedics is plotting a broad development program for sacituzumab govitecan across a host of indications such asNSCLC and SCLC, as well as triple-negative breast, esophageal, urothelial, and colorectal cancers, according to the company. Unfortunately, the drugmaker exited the second quarter of 2015 with only$99.6 million in cash, cash equivalents, and marketable securities, meaning that a major expansion in its clinical activities will probably require a sizable secondary offering. As such, you may want to stick to the sidelines with this speculative biotech until its long-term financing needs are secure.

The article Why Immunomedics' Stock Spiked Today originally appeared on Fool.com.

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