Please ensure Javascript is enabled for purposes of website accessibility

Why Celldex Therapeutics, Inc. Ran Higher Today

By Brian Orelli, PhD – Sep 27, 2016 at 4:26PM

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

Investors await clinical trial data.

Image source: Getty Images.

What happened

Celldex Therapeutics (CLDX -1.55%) closed up 11% Tuesday without any obvious news to support the double-digit gain.

So what

As often happens, investors may be piling into Celldex on Tuesday ahead of expected data from a phase 2 clinical trial testing the biotech's lead drug, glembatumumab vedotin, in melanoma patients. The data will be presented at the European Society for Medical Oncology (ESMO), which starts on Oct. 7.

Some of the ESMO abstracts are scheduled to be released Wednesday at 6:00 a.m. EDT, so Tuesday's bounce could be from last-minute investors hoping that the data in the abstract will cause an even bigger bounce on Wednesday.

Keep in mind that abstracts for the meeting were due in May, so Celldex's abstract won't have the most up-to-date data -- the study only completed enrollment in April -- and investors will have to wait for the meeting to get a complete picture of how glembatumumab vedotin performed. And if Celldex Therapeutics was given an oral presentation spot, the abstract won't be released until Oct. 5.

What we do know is that the clinical trial was deemed successful -- defined as at least six responses in the first 52 treated patients -- which Thomas Davis, Celldex's chief medical officer, said was "met and exceeded."

Now what

Exceeded by how much is really the key question. These are melanoma patients that have failed other treatments, so a substantially high response rate could be enough to get the drug an accelerated approval or, at the very least, give investors confidence that the drug is working. Celldex is also testing glembatumumab vedotin in combination with one of its other drugs, varlilumab, in melanoma patients and in a separate study in patients with metastatic triple negative breast cancer.

Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Celldex Therapeutics. 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Celldex Therapeutics Stock Quote
Celldex Therapeutics
$33.12 (-1.55%) $0.52

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.