Please ensure Javascript is enabled for purposes of website accessibility

Why Celator Pharmaceuticals Shares Shot 483% Higher In March

By Todd Campbell - Apr 7, 2016 at 1:40PM

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 potential to improve upon a long-standing cancer chemotherapy sparked a massive rally last month.


What: After management reported impressive late stage trial results for its treatment for acute myeloid leukemia (AML), shares of Celator Pharmaceuticals (NASDAQ: CPXX) were sent sky-rocketing 483.6% in March, according to data from S&P Global Market Intelligence.

So what: The clinical stage drugmaker's Vyxeos delivered impressive efficacy and similar efficacy in a phase 3 study evaluating its use against the current standard of care in AML patients.

Specifically, in a phase 3 trial involving 309 people, the overall survival of secondary AML patients receiving Vyxeos was 9.56 months, which was much better than the 5.95 months survival for patients receiving the standard of care 7+3 chemotherapy regimen.

Those trial results are impressive, especially considering that Vyxeos is an optimized 5:1 synergistic ratio of the two drugs that are used in the 7+3 regimen: cytarabine and daunorubicin.

Also encouraging is the fact that Celator Pharmaceuticals formulation of this two drug cocktail delivered similar safety to the 7 + 3 approach, suggesting that doctors will have little objection to replacing the 7 + 3 regimen with this new therapy, if it notches regulatory approval.  

Now what: Vyxeos could be the most significant advance in this tough-to-treat patient population in thirty years and as such, investors are probably right to assume that a rapid shift away from 7 + 3 to it could occur if the FDA gives it a green light.

Celator Pharmaceuticals management plans to file for U.S. approval of Vyxeos in the third quarter and then file for its approval in the EU early next year. Although there's no guarantee that regulators will approve Vyxeos, I think its efficacy and safety profile is good enough for it to happen. If I'm right, then Celator Pharmaceuticals could begin reporting meaningful sales of Vyxeos by as early as late next year.

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

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 05/27/2022.

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.