Why the Noxopharm share price rocketed 22% today

The biotech company's shares bolted today on good news out of its current trial. Here's a closer look.

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The Noxopharm Ltd (ASX: NOX) share price went gangbusters today after the company released a new report about its flagship drug, Veyonda. Shares in the biotech closed trade 22% higher at 74 cents a share.

Lets take a closer look at what propelled the Noxopharm share price higher.

Independent trial

Noxopharm shares shot up today on the news that a new independent trial supports the use of Veyonda as a new anti-cancer drug.

The LuPIN trial was in conjunction with Novartis AG (NYSE: NVS)'s Lu-PSMA experimental radiopharmaceutical drug. Novartis is a Swiss pharmaceutical giant with a market capitalisation of $218 billion.

Promisingly, the company advised that the combination of Veyonda and Lu-PSMA delivered a median overall survival outcome of 19.7 months, which inferred a 71% increase in survival outcome over an earlier study known as the WARMTH trial.

Also of note is that the study has helped Noxopharm validate that a higher dosage of the drug is well tolerated for a greater anti-cancer effect.

The LuPIN study will not formally conclude until October 2021 when the final data will be announced. As a result of the positive news announced today, the company also announced the possibility of a larger Phase 2 LuPIN study.

Management comments

Dr Graham Kelly, Noxopharm CEO and managing director, welcomed the news:

This result further supports the Company's belief that Veyonda has the potential to become a standard of care drug to be used in combination with the most common forms of anti-cancer treatments.

He added:

Based on early data from our CEP-1 and DARRT-1 clinical studies, we believe that the unique multiple anti-cancer actions of Veyonda have the potential to produce meaningful survival benefits as a combination treatment across multiple treatment combinations. The striking difference in mOS outcomes between the LuPIN and WARMTH trialsserves to further support that belief.

About the Noxopharm share price

Noxopharm is an Australian clinical stage drug development company focused on the treatment of cancer.

The Noxopharm share price is up an impressive 250% over the last year. Far eclipsing the 24.7% return of the All Ordinaries Index (ASX: XAO).

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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