In an upside session today, investors may be intrigued by some of the biggest winners and biggest losers as most stocks hold around the flat line. Among the leaders in terms of earnings percentage today is the biotechnology company Ambrx (NYSE:AMAM), which absolutely exploded today. AMAM shares traded over 600% at the start of today’s session. They have since settled at gains of around 440% as of 1:30 p.m. EST.
The move follows a key announcement from the company regarding published data for its breast cancer drug ARX788. Early safety and efficacy data suggest that patients resistant or refractory to tucatinib-containing regimens achieved a disease control rate (DCR) of 100% and an overall response rate (ORR) of 51.7 %.
Overall, these numbers are very impressive. These types of data suggest that the company’s research and development process has resulted in what could be a big winner. As a result, given the size and importance of the breast cancer market, investors are jumping massively on this stock today.
Let’s see if AMAM stock is still a buy after this massive rally.
Is it now time to stock up on AMAM actions?
It should be noted that the data released today is preliminary. Additionally, this data is linked to a Phase 2 study of the company’s key treatment. Therefore, phase 3 trials will need to be conducted before regulatory approval can be granted.
That said, this fairly significant study, which lasted over seven months for most patients, showed very positive results. Given the staggering safety and efficacy data presented, it is likely that the company will try to accelerate the development of this drug. For investors, this could mean a faster path to profitability, which is what all biotech investors seek.
“These preliminary safety and efficacy data in a heavily pretreated population further reinforce our view of the stability and precision underlying Ambrx’s proprietary drug-binding and site-specific conjugation technology for drug design. ‘ADC,” said Daniel O’Connor, CEO of Ambrx. “Our unique approach provides a highly differentiated biological design so we can work to deliver better outcomes for patients with difficult-to-treat cancers.”
Those looking for a higher risk, higher potential bet certainly have an intriguing option to consider in the biotech space. This rally was significant, but it should be noted that Ambrx still only trades at a market cap below $100 million. As a result, if this drug is successful, there could still be a lot of benefits from here.
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As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.