Another hopeful biotech in the spotlight today is cancer vaccine or immunotherapy business Prima BioMed Limited (ASX: PRR). Its shares have rocketed 180% this morning to 15.5 cents, which is around 7x Monday's value of 2.2 cents.
The company says it is a market leader in immuno-oncology, which is the practice of developing immune-based therapies that enable the body's immune system to selectively recognise and attack cancer cells in an effect that provides long-lasting benefits to patients.
This is because the therapy can effectively train the immune system to fight cancer even after remission. This explains why the reported trial success of Prima BioMed's therapy in patients in second remission of ovarian cancer is causing excitement in the medical and investment community.
Several immuno-oncology therapies are reportedly already either available to use or being prepared for use in treating melanoma and prostrate cancer, among others, in a new front in the battle to find effective cancer treatments. If Prima BioMed is able to add its CVac vaccine to the list in fighting ovarian cancer it looks to have a bright future.
The company has just raised $15 million to fund the development of two new clinical trials with Prima's lead immuno-oncology product IMP321.
One of the trials is a Phase IIb trial designed to treat metastatic breast cancer in patients ineligible for other treatments. The other is a Phase I trial designed to test the IMP321 drug together with an immune checkpoint inhibitor.
The company's recent ovarian cancer trial success was a Phase II trial, although generally it is not until after a comprehensive Phase III trial has demonstrated statistically significant benefits to patients that a company can hope to commercialise its products.
Waiting on results of clinical trials rarely stops investors piling into biotech stocks in the hope of winning the investing jackpot, but more often than not this buy first / worry later approach can lead to painful losses.
This buy the rumour culture exemplified by the late rush into Sirtex Medical Limited (ASX: SRX) shares recently, before investors were left to sell the fact after a failed result for its SIRFLOX clinical trial. The stock tanked around 50% in a single morning as the risks of investing in speculative biotechs came home to roost again.
Investors should also tread carefully around Prima BioMed and be comfortable with the risks before committing to an investment decision.
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