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Celator Pharmaceuticals Shares Soared on Tuesday After Successful Test
Following its successful test on medication to fight cancer, shares of Celator Pharmaceuticals jumped at the staggering 432% on Tuesday. While Steve Cohen revealed ownership of the company's shares.
On Monday, Celator Pharmaceutical released an official announcement of success in Phase 3 trial of its leukimia drug. The drug CPX-351 is targeted for patient with acute myeloid leukemia (AML) and in its latest test showed a positive result compared to standard chemotherapy medication known as 7+3. The New Jersey-based company register its CPX-351 with trade mark name VYXEOS.
Acute myeloid leukemia is a type of blood cancer where abnormal white blood cells accumulate in the bone marrow and hinder the production of normal blood cells. This type of cancer also known as acute nonlymphocytic leukemia. Although AML is a relatively rare disease, but in an accute condition it is the most common acute leukemia affecting adults, and its incidence increases with age.
Celator Pharmaceuticals will submit the data for presentation at the American Society of Clinical Oncology (ASCO) 2016 Annual Meeting in Chicago next June. Chief of Leukemia/Myelodysplasia Program at Moffitt Cancer Center and the principal investigator for the clinical study Jeffrey E. Lancet, M.D. said, "The overall survival advantage seen with CPX-351 compared to 7+3, along with a superior response rate and no increase in serious toxicity indicates that we'll likely have a new standard of care for treating older patients with secondary AML."
Subsequently, the company's shares soared to more than 400%. Market Watch reported that shares of Celator Pharmaceuticals shot into stratosphere after hours Monday. Investors showed much interest on Tuesday in a new leukimia treatment as they did in the next iPhone.
In Tuesday's trading, shares of Celator was closing at $8.94, set a new all-time high after a massive 432% jump. Following the share increase, Celator became a $313 million company.
Analysts at H.C. Wainwright, Andrew Fein who cover Celator said the company's achievement is remarkable, "Rare enough as Phase 3 wins in oncology are, yesterday Celator scored an even rarer event: a survival win in AML, and with a front-line treatment no less."Fein now raised his price target of Celator to $20 from $7.
"While the company's market cap had until yesterday hovered around the $60M range, the most relevant question this morning is: What would be an appropriate valuation for this former microcap, were Vyxeos really able to replace a front-line standard of care regimen?" Fein wrote in his note to client.
Meanwhile Business Insider reported that in a filing out Tuesday after the market close, hedge fund manager Steve Cohen revealed his 8.3% ownership stake Celator Pharmaceuticals. In the past 10 days, Cohen through Point72 Asset Management acquired over 2.8 million of Celator shares.
Celator Pharmaceuticals shares jumped surprisingly to 432% in Tuesday trading after announcing its rare success of test on drug for leukimia. Meanwhile, in Tuesday's filing, hedge fund manager Steve Cohen revealed his 8.3% ownership of the company's shares.
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