Shares of biopharma company Regeneron Pharmaceuticals spiked today, rising as much as 38% on huge volume closing at $67.00.
REGN and partner SNY announced positive results from its phase III study of Zaltrap, a treatment for metastatic colorectal cancer. When used in combination with chemotherapy, Zaltrap was able to improve overall survival for patients versus a placebo.
Commenting on the results, Regeneron’s chief scientific officer said that Regeneron and sanofi-aventis will now submit applications for marketing approval for Zaltrap to the U.S. Food and Drug Administration and the European Medicines Agency in the second half of the year, which would put a decision from regulators sometime next year. Investors in sanofi-aventis hardly blinked at the news, as the market for Zaltrap is relatively modest. However, for a smaller company like Regeneron, the impact of an approval (which is still far from guaranteed) would be more significant.
Is it the right time to accumulate REGN? Without the full data — how much did Zaltrap increase survival — it’s a little difficult to know how much the drug could bring in. But any improvement is likely enough to get the drug on the market, considering these patients have already failed a prior treatment. However modest investmment is recomended. For those who alredy in show some patiance and hold on for further news.