Noxopharm Ltd (ASX: NOX) shares are having a bumper end to the week after the company released a market update this morning. At the time of writing, the Noxopharm share price is storming 16.49% higher to 56.5 cents.
In earlier trade, the company's shares reached an intraday high of 58 cents before retreating to their current level.
Here's what Noxopharm announced and why shares in the company are flying.
What's driving the Noxopharm share price?
The Noxopharm share price is shooting the lights out today after the company provided an update regarding its flagship Veyonda drug candidate.
According to the update, Noxopharm's CEP-2 study will commence shortly. The CEP-2 study will be testing the chemo-enhancing effect of the company's Veyonda drug candidate in conjunction with low doses of chemotherapy.
Following positive outcomes of its CEP-1 study, the new study will see higher dosages of Veyonda used. The CEP-2 study will involve 40 patients with a range of soft tissue sarcomas using Veyonda/doxorubicin as first-line therapy.
In further news boosting the Noxopharm share price, the company noted that the study will help it achieve its ultimate goal of seeing Veyonda used as a standard booster for all major forms of cancer therapy.
The healthcare company also highlighted its strong cash position, after raising $23 million in capital in December 2020. In addition, the company announced it has appointed a contract research company to oversee the study.
More on Noxopharm
Noxopharm is an Australian clinical-stage drug development company focused on its Veyonda drug candidate. Veyonda (formerly known as NOX-66) is a dual-acting cytotoxic and immune-oncology drug candidate designed to enhance the effectiveness of traditional chemotherapy.
Veyonda acts by using the body's immune cells to attack cancer cells that survive initial treatment. According to Noxopharm, Veyonda appears to work across a broad spectrum of cancers. In addition to cancer, Veyonda has also undergone studies for its effectiveness against long-term septic shock symptoms resulting from infections and viruses such as COVID-19.
The company sees a major commercial opportunity for Veyonda to be used as a booster for all four major forms of cancer therapy. These include chemotherapy, external radiotherapy, internal radiotherapy and checkpoint inhibitor therapy.
Earlier this year, Veyonda was granted approval from the United States Food and Drug Administration (FDA). The Investigational New Drug (IND) approval allows Noxopharm to trial Veyonda in combination with other therapies. Noxopharm received encouraging outcomes from its CEP-1 pilot study earlier this year.
Noxopharm share price snapshot
Over the past year, Noxopharm shares have soared by 228%. Year to date, the company's shares have gained around 15%. Based on the current share price, Noxopharm has a market capitalisation of around $135 million.
