Please ensure Javascript is enabled for purposes of website accessibility

Why Aptose Biosciences Stock Is Skyrocketing Today

By Keith Speights - Mar 24, 2021 at 12:25PM

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 company reported very encouraging results from an early-stage study.

What happened

Shares of Aptose Biosciences (APTO -5.15%) were skyrocketing 70.6% higher as of 11:39 a.m. EDT on Wednesday. The huge gain came after the company provided a fourth-quarter update following the market close on Tuesday that featured new results from an early-stage clinical study evaluating luxeptinib in treating acute myeloid leukemia (AML).

So what

Aptose announced "encouraging anti-leukemic activity" has been observed so far in its phase 1 study of luxeptinib in treating AML. That's perhaps an understatement. One patient in the study has experienced a complete remission with no safety issues. The company also stated that luxeptinib was "broadly potent against AML cells, suggesting potential across [the] entire AML patient population."

Red line trending up with a rocket soaring above it

Image source: Getty Images.

This news prompted some analysts to become more bullish about the biotech stock. For example, Oppenheimer's Matthew Biegler raised his price target for Aptose to $9, a 145% premium to the stock's closing price on Tuesday.  

It's important to remember, though, that Aptose's results were from an early stage study. There's still a long way to go for luxeptinib. Positive early data doesn't always translate to success in later-stage clinical testing.

Now what

Aptose has escalated to the 600 milligram twice-per-day dosing of luxeptinib in its phase 1 study. It's also continuing to enroll additional patients. The company plans to present complete and updated data at the European Hematology Association meeting in June.

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

Aptose Biosciences Inc. Stock Quote
Aptose Biosciences Inc.
$0.97 (-5.15%) $0.05

*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 05/24/2022.

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.