Why the Bionomics share price rocketed 75% higher today

The Bionomics Ltd (ASX:BNO) share price has rocketed 75% higher on Monday. Here's why…

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The best performer on the All Ordinaries (Index: ^AXAO) (ASX: XAO) on Monday has been the Bionomics Ltd (ASX: BNO) share price.

In morning trade the biotechnology company's shares are up a massive 62% to 19.5 cents.

At one stage the Bionomics share price was up a remarkable 75% to 21 cents.

Why is the Bionomics share price on fire today?

This morning the company announced that further data analysis of its Phase 2 Post Traumatic Stress Disorder (PTSD) trial of its BNC210 candidate shows the potential for significant patient benefit when the drug exposure is adequate.

The release explains that the "variable absorption of the liquid formulation of BNC210 used in the PTSD trial and the requirement for the drug to be taken with food may be overcome through development of an improved solid dose formulation which has recently been evaluated in healthy human volunteers. The solid dose formulation of BNC210 is anticipated to be used in any future PTSD trials."

The Bionomics share price was smashed last year when the trial results were initially released and came in below expectations. So, this news is certainly a big positive for shareholders.

Management advised that it will now seek FDA guidance on next steps for BNC210 for PTSD, including the design of a further trial and whether BNC210 is eligible for Fast Track designation.

The company's advisor, Prof Karlsson, said "Exposure-response modelling has shown the potential for BNC210 to have significant benefit in PTSD provided that adequate blood levels are achieved. This analysis provides a basis for optimal design of future trials to demonstrate efficacy."

Should you invest?

Whilst this certainly is promising news for the company given how lucrative the PTSD market could be, I believe it is a little too soon to make an investment.

Instead, I would suggest investors keep an eye on its progress and in the meantime take a look at industry peers CSL Limited (ASX: CSL) and Mayne Pharma Group Ltd (ASX: MYX) or even small cap biotech star Telix Pharmaceuticals Ltd (ASX: TLX).

Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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