Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Radius Health Inc. Stock Is Jumping Today

By Brian Feroldi - Jun 5, 2017 at 3:27PM

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

Shares popped after the company reported upbeat results from a phase 1 study.

What happened

Shares of Radius Health (RDUS 0.53%), a commercial-stage biopharma primarily focused on diseases of the bone, were up 10% as of 3:15 p.m. EDT on Monday after the company reported data from a phase 1 clinical trial.

So what

Radius provided investors with an update from its 40-patient ongoing phase 1 study of its pipeline candidate elacestrant, or RAD1901. This drug is being studied as a potential treatment for estrogen-receptor-positive breast cancer.

Here's a look at the key data that was released today at the American Society of Clinical Oncology annual meeting:

  • Elacestrant demonstrated a 23% objective response rate in patients who were heavily pre-treated as of the cut-off date of April 28. 
  • The 400 mg patient group with mature data demonstrated a median progression-free survival rate of 4.5 months and a clinical benefit rate of 42% after 24 weeks.
  • Fifteen of the 40 patients remained on treatment as of the cut-off date.

This data was impressive given that all of the patients in the study had received a median of three prior lines of treatment. In addition, elacestrant was well-tolerated by patients.

Dr. Aditya Bardia, a director at Mass General, said, "While still early, the single-agent clinical activity and safety profile demonstrated with elacestrant in this heavily pretreated advanced hormone receptor positive breast cancer patient population is encouraging when compared to the results shown for other agents in a similar setting."

The upbeat clinical news caused traders to cheer.

Doctor giving thumbs-up

Image source: Getty Images.

Now what

While there's no doubt that elacestrant is an intriguing compound, Radius Health's immediate future hinges on a successful rollout of Tymlos. This drug just won FDA approval on April 28 as a treatment for osteoporosis in postmenopausal woman and was recently launched. Shareholders have their fingers crossed that the drug can live up to its full potential.

That might not be easy given that Tymlos comes with a black-box warning of an increased risk of developing osteosarcoma, a type of bone tumor. On the flip side, Radius just reported data from a 3.5-year-long study of Tymlos that showed patients who used the drug had an 84% relative risk reduction in the incidence rate of new vertebral fractures when compared to placebo. That could be a strong enough argument to convince patients and providers alike to give the drug a try.

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

Radius Health, Inc. Stock Quote
Radius Health, Inc.
$5.65 (0.53%) $0.03

*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 service.

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 05/16/2022.

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.