Ambrx Biopharma Inc (NYSE: AMAM) stock surged more than 1000% on Friday after the biotech company announced preliminary safety and efficacy data from its Phase 2 ACE‑Breast-03 study during a Spotlight Poster Presentation at the 2022 San Antonio Breast Cancer Symposium (SABCS). The data presented by the investigator demonstrated a 51.7% overall response rate (ORR) by RECIST v1.1 and a 100% disease control rate (DCR) after treatment with ARX788 in HER2-positive mBC patients who are resistant or refractory to T-DM1.
So what caused the stock to surge over 1000%?
According to MarketStudyReport, the North American breast cancer therapeutics market size is expected to amass a valuation of USD 16 billion by 2028. Cases of human epidermal growth factor receptor 2 (HER2)-positive breast cancer represent approximately 15% to 20% of all breast cancers. Historically, this subtype of breast cancer was associated with an increased risk for the development of systemic and brain metastases and poor overall survival. The introduction of trastuzumab dramatically changed the outcomes of patients with HER2-positive disease, with many demonstrating outcomes similar to those of patients with luminal tumors. Currently, the first-line standard of care for patients with HER2-positive metastatic breast cancer is dual HER2 antibody therapy with pertuzumab/trastuzumab plus a taxane.
After progression, the standard of care is trastuzumab emtansine (T-DM1). Although the treatment choices for patients whose disease has progressed on these agents are more limited, promising new drugs have emerged as effective options, including tucatinib and trastuzumab deruxtecan, which were recently approved by the US Food and Drug Administration. Finding the best treatment sequencing for each patient, developing reliable predictive biomarkers, and understanding the mechanisms of resistance to these drugs are necessary to maximize patient outcomes and quality of life.
Will AMAM continue to run higher?
While it’s difficult to predict the course of any stock in light of the news, AMAM could very well become a buyout candidate. Sara Hurvitz, M.D., Professor at David Geffen School of Medicine at UCLA, stated, “We are encouraged by the response rates and safety results, particularly given the significant need for new therapies among patients whose disease continues to progress after receiving multiple lines of therapy. We thank the San Antonio Breast Cancer Symposium for accepting our abstract as a Spotlight Poster Discussion presentation and the opportunity to show early results from the ACE-Breast-03 Phase 2 clinical trial.”
It would be interesting to see the current short float on AMAM. As per Benzinga, the current short float on AMAM is negligible at 37M shares. It would be entertaining to see if retail traders take on AMAM from here onwards. However, it seems that AMAM could consolidate this week for a run-up into Christmas.
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