Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Adaptimmune Therapeutics Is Rocketing Higher Today

By Cory Renauer – May 29, 2020 at 2:20PM

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

Positive results from a handful of patients treated have bolstered confidence in the company's cell-based approach to cancer treatment.

What happened

Shares of Adaptimmune Therapeutics (ADAP 4.91%), a clinical-stage biotech focused on oncology, are rocketing higher in response to updated trial data. Investors impressed with the results have pushed the stock 139% higher as of 1:36 p.m. EDT on Friday. 

So what 

Earlier this year, Adaptimmune Therapeutics stock exploded higher after the company reported four partial responses to its experimental T-cells therapies, two of which hadn't been confirmed at the time. Today's update suggests those early signs of success really were pointing in the right direction.

Big rocket

Image source: Getty Images.

In the Surpass trial, three of the first four patients treated with ADP-A2M4CD8 had smaller tumors at the last checkup than they did at the outset. Eight out of 16 patients with synovial sarcoma have shown partial responses to treatment with ADP-A2M4. Two out of three esophagogastric junction (EGJ) cancer patients treated with ADP-A2M4CD8 showed partial tumor shrinkage.

Also, one out of three liver cancer patients treated with ADP-A2AFP that had a partial response earlier this year has improved to a complete response. This sign of durability was particularly encouraging because this was the first patient treated with this candidate at the target dosage.

Now what

Adaptimmune doesn't have any approved products to sell yet, but new tumor responses reported today suggest the company's headed toward commercialization in more directions than previously expected. Adaptimmune intends to complete the recruitment of synovial sarcoma patients into the Spearhead-1 trial with ADP-A2M4 by the end of June, and based on today's update, the company thinks the trial will support an accelerated approval followed by a commercial launch in 2022.

Based on responses from EGJ patients treated with ADP-A2M4CD8 so far, Adaptimmune will start a new phase 2 study focused on this indication. Despite today's big run-up, there could be a lot more room for this stock to climb if its cell-based cancer therapy candidates continue to impress.

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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

Adaptimmune Therapeutics Stock Quote
Adaptimmune Therapeutics
ADAP
$1.18 (4.91%) $0.06

*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
338%
 
S&P 500 Returns
108%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/07/2022.

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.