German biotechnology company BioNTech said Friday almost a third of patients with a hard-to-treat form of lung cancer responded to its experimental treatment — and BNTX stock popped.
The drug, known as gotistobart, belongs to the immuno-oncology class. Like Bristol Myers Squibb's Yervoy, it aims to block a protein called CTLA-4.
Tumor cells can use this protein as camouflage to hide from the immune system. BioNTech and its partner, privately held OncoC4, hope their drug will have fewer side-effects attached.
Researchers tested gotistobart in 27 patients whose cancer doesn't respond to other immuno-oncology drugs like Merck's Keytruda and Bristol's Opdivo. These patients also worsened while trying other treatments. Overall, 29.6% of patients responded to treatment with gotistobart.
On the stock market today, BNTX stock jumped 3.9% to close at 108.13.
BNTX Stock: Broadening The Treatment Toolkit?
BioNTech's Chief Medical Officer Ozlem Tureci noted only 9% of patients with metastatic non-small-cell lung cancer — the group BioNTech and OncoC4 treated — survive for five years after their diagnoses.
"These new data highlight the potential of (gotistobart) to provide a new approach to leveraging CTLA-4 as an effective target to address advanced, hard-to-treat tumors, further broadening our oncology tool kit," he said in a written statement.
BioNTech and OncoC4 said 70.4% of patients had their tumors shrink or remain stable over time, a measure called the disease control rate. The results helped BNTX stock gap higher.
It's important to note, immuno-oncology drugs often lead to side effects involving the immune system. In the gotistobart study, just 30% of patients had a severe or life-threatening immune system side effects. BioNTech says that's lower than side effect rates in similar drugs.
Still, BNTX stock remained below its 50-day moving average, according to MarketSmith.com.
More Details To Come
BioNTech will present further details at the American Society for Clinical Oncology meeting next week. The results from this study could drive BNTX stock higher, SVB Securities analyst Daina Graybosch said in a note to clients. She noted one patient out of 27 had a complete response, meaning his or her tumor disappeared entirely.
"We are encouraged by the complete response and would like to see additional information at ASCO on the magnitude of benefit in this patient," Graybosch said.
She has an outperform rating on BNTX stock.
Investors are closely watching new developments from BioNTech in cancer treatment as sales of the company's Covid vaccine, where it partners with Pfizer, slow down.
Last week, the companies agreed to a renegotiated contract with officials in Europe for the Covid shot. According to Bloomberg, the new contract could reduce the agreed-upon supply by 35%.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
