Why the Noxopharm (ASX:NOX) share price is jumping 14% higher today

The Noxopharm Ltd (ASX: NOX) share price is going berserk today. We take a look at what the company released in its latest shareholder update.

Mitchell Lawler

Mitchell stumbled upon the concept of investing when in high school, devotedly urging his parents to put some money into a handful of technology companies with increasingly popular products among his demographic – many of which have gone on to great success. It wouldn’t be until 2017, some five years later, that Mitchell became an investor of his own money. Having studied and worked as a mechanical engineer in the building services industry, Mitchell takes a methodical and analytical approach to evaluating businesses. Rather than relying purely on numbers, Mitchell drills beyond a company’s metaphorical mantle to unearth obscure patterns or competitive advantages that would go otherwise unnoticed. His expertise resides within areas such as software, consumer goods, and building services equipment. However, his quest to find quality companies that set the industry standard and flex some degree of an impenetrable position has no limits – small cap to mega cap, cosmetics to healthcare – if it’s an exceptional business it’s on his radar.

Published January 6, 2021 2:43 pm AEDT

While the S&P/ASX 200 Index (ASX: XJO) is slipping today, the Australian clinical-stage drug developer Noxopharm Ltd (ASX: NOX) is bucking the trend with its shares rising.

At the time of writing, the Noxopharm share price is up 14.13% to 52 cents.

A medical researcher works on a bichip, indicating share price movement in ASX tech companies — Image Source: Getty Images

Why is the Noxopharm share price increasing?

Cancer drug update

Noxopharm released a shareholder update to the market this morning pertaining to its drugs in development.

In the update, Noxopharm states that its immunotherapy drug, Veyonda, is emerging as a major new treatment. The company goes on to describe the potential value as 'multi-billion dollar', based on its ability to boost the effectiveness of all 3 current methods of cancer treatment: immune-oncology therapy, radiotherapy, and chemotherapy.

The immunotherapy drug is currently undergoing various testing by IONIC, LuPIN, and DARRT-2 to assess its ability in different applications.

Noxopharm has also advised that its NOXCOVID trial is progressing as planned. The aim of this drug is to block the cytokine release syndrome in COVID-19 patients, preventing deaths and long-term disability. The company foresees the trial to likely expand as COVID-related deaths rise across Europe.

Positioning for commercial transactions

Noxopharm later mentioned that it believes its leading position in restoring immune function to tumours will translate shortly into commercial discussions. Due to this, the company is building an in-house business development capability to meet this opportunity.

Future plans

Noxopharm detailed 2 programs it is focusing on for its drug pipeline for 2021. The first being treatments for pancreatic carcinoma and cholangiocarcinoma. The second being treatments for brain cancers, based on the inhibition of metabotropic glutamate receptor activity.

The company is expected to have identified lead drug candidates and be underway with standard pre-clinical testing programs by mid-2021.

Lastly, Noxopharm has elaborated on the new subsidiary, Pharmorage Pty Ltd. The purpose of the new entity is to build upon an existing drug that was found to be potentially useful in treating cytokine release syndrome and septic shock. Pharmorage has reportedly initiated a number of drug discovery programs which will be reported on progressively throughout the year.

The Noxopharm share price has gained 102% over the last 12 months.

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