What happened to Sirtex Share Price?
Sirtex Medical Ltd [ASX:SRX] shares increased 12.94% today. Shares are trading at $17.67 at time of writing, up from $15.65 yesterday.
Sirtex Medical is an Australian based global healthcare company working to improve cancer treatments using novel small particle technology.
Why the share price rise?
The company announced higher than expected earnings for the first half of FY18. Sirtex said that its unaudited first-half earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months to 31 December 2018 are expected to be approximately $34 million, up 16% compared to the previous period.
Sirtex suffered a setback in May 2017 after a clinical study ultimately disappointed, causing shares to tumble 28% and placing the company in a trading halt. The study found that their SIR-Spheres product did not improve survival rates for metastatic colorectal cancer patients when compared to using chemotherapy alone. SIR-Spheres Y-90 is a liver tumor-fighting medication that selectively targets liver cancer.
What now for Sirtex?
Earnings are up even though worldwide sales for SIR-Spheres medication were flat.
Yet the company is anticipating higher sales in the second half of the year.
Sirtex Medical will be releasing full first-half financial results on 21 February 2018.
For Money Morning
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