Why the Noxopharm (ASX:NOX) share price surged 8% higher today

The Noxopharm Ltd (ASX:NOX) share price surged higher on Monday after announcing a new study of its Veyonda product…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Noxopharm Ltd (ASX: NOX) share price has started the week in a positive fashion.

At one stage today the clinical-stage drug development company's shares were up as much as 8% to 54 cents.

The Noxopharm share price has since pulled back a touch but is still up 2% to 51 cents at the time of writing.

Why did the Noxopharm share price surge higher?

Investors were buying Noxopharm shares today after it announced that it has joined a pilot study (IONIC-1) to explore the ability of Veyonda to boost the effectiveness of Bristol Myers Squibb's nivolumab (Opdivo) for the treatment of cancer.

Veyonda is a second-generation immuno-oncology drug candidate based on selective inhibition in cancer cells of the pro-survival secondary messenger, sphingosine-1-phosphate (S1P).

The company notes that the body uses a gradient of S1P levels (high to low) to move immune cells between blood and tissues. Cancers express high levels of S1P, reversing that gradient and thereby expelling immune cells from tumours.

By inhibiting S1P in tumours, Veyonda is designed to restore a normal gradient, thereby allowing immune cells to repopulate tumours in a so-called COLD to HOT conversion.

What is IONIC-1?

Immune checkpoint inhibitors such as nivolumab have revolutionised the treatment of some cancers with what can be dramatic life-saving benefits. However, management notes that some patients have inherent resistance to immune checkpoint inhibitors.

The IONIC-1 study will investigate whether Veyonda is able to overcome this resistance in patients with cancers such as breast, ovarian, prostate, and sarcoma cancers.

Principal Investigator and eminent oncologist, Professor De Souza, commented: "I'm excited to be working with Noxopharm and Bristol Myers Squibb on this study. Checkpoint inhibitors have made a tremendous difference to some patients with advanced cancer and if we can increase the number of patients that respond through the addition of Veyonda to their treatment regimen, we will make a significant impact, not only to those individuals, but also on the oncology landscape."

The checkpoint inhibitor market, encompassing PD-1, PD-L1 and CTLA-4 inhibitors, is a multi-billion-dollar market which is experiencing rapid year on year growth. It is currently dominated by two major global pharmaceutical companies, one of which is Bristol Myers Squibb.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Catapult, De Grey Mining, Domino's, and Nufarm shares are charging higher

These shares are ending the week strongly. But why?

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Share Gainers

How these 3 ASX 200 stocks smashed the benchmark this week

Investors sent these ASX 200 stocks flying higher over the week. But why?

Read more »

asx share price boosted by us investment represented by hand waving US flag across winning athlete
Best Shares

Here are the best-performing ASX 200 shares since the US election result

We reveal the 10 ASX stocks that have had the highest share price gains since the US Presidential election.

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Industrials Shares

Up 39% in a year, is there more growth to come for this ASX 200 share?

IML Equity Analyst Josh Freiman shares his views on a major ASX 200 industrial stock.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Catapult, Flight Centre, Nufarm, and Xero shares are storming higher today

These shares are having a strong session on Thursday. But why? Let's find out.

Read more »

drug capsule opening up to reveal dollar signs signifying rising asx share price
Healthcare Shares

3 ASX healthcare shares going gangbusters on Thursday

Investors are sending these ASX healthcare stocks soaring today. But why?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 made it three-for-three losses in a row this Wednesday.

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Brickworks, James Hardie, Megaport, and OFX shares are charging higher today

These shares are having a good time on hump day. But why?

Read more »