The Noxofarm Ltd (ASX: NOX) share price soared after positive results regarding its cancer treatment drug, Veyonda, were released this morning. The immuno-oncology drug development company saw its share price rise 12% to 37 cents on the news. Noxofarm shares have since been sold down to 34 cents (at the time of writing) representing a more modest gain of 3% for the day so far.
While this is good news for the company, the drug is still a very long way off commercialisation stage. If Veyonda does actually reach commercialisation, it's likely the Noxopharm share price will once again surge. Currently, however, Noxopharm continues consuming cash via capital raisings. The company's share price has been gradually shrinking over the past couple of years due to the ballooning number of shares on issue. Noxopharm has already undertaken two equity raises this year.
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What does Noxopharm do?
Noxopharm is an ASX listed, clinical stage drug development company. Noxopharm's current clinical stage drug is Veyonda. Veyonda aims to work with the body to fight cancer, not against it as is commonplace. It enhances the cancer-killing effect of standard chemotherapy and radiotherapy. Thus, enabling lower doses of these toxic therapies to be successfully administered. Furthermore, the drug seeks to activate the body's innate immune cell function to attack those cancer cells that have survived the initial treatment.
Why did the Noxopharm share price soar?
The Noxopharm share price soared as it was announced that independent data confirmed Idronoxil could convert 'cold' tumours to 'hot' tumours. Idronoxil is the main active ingredient in Veyonda. This action is regarded as a fundamental goal in enabling immuno-oncology drugs. These drugs have long been hailed as the future of cancer therapy, but are poorly effective in 'cold' tumours. 'Cold' tumours are the majority of those found in human cancer patients. The ability to convert tumours to 'hot' restores cancer-fighting immune cells to tumours. Therefore enabling the body to aid in the fight against cancer.
This conversion is seen as a prerequisite in expanding the annual US$20 billion immuno-oncology drug market. Furthermore, a patent has been lodged on this potentially highly valuable intellectual property with Noxopharm to commence discussions with global oncology firms.
What now for the Noxopharm share price?
Despite this encouraging news, the data is only pre-clinical and, as such, the drug is still a long way from being released to the markets. Nevertheless, it is much needed good news for the ASX biotech stock. The Noxopharm share price has seen its share price spike 100% so far in July despite this being the first piece of news announced this month.
