For many stocks, a 60% return over a year is impressive. For biotech’s it could just be another Monday…
Case in point Kazia Therapeutics Ltd [ASX:KZA].
This cancer treatment company is up 62.5%, at time of writing. A massive return for such a tiny stock.
Better still, this result could actually end up saving lives.
The reason for Kazia’s surge today is due to positive signs from a drug trial.
It seems that the company may have found a promising treatment for glioblastoma. A common form of brain cancer.
From the data they’ve gathered, it seems the drug may delay ‘progression’ of the disease. So, by no means is this being touted as a cure, but potentially a way to delay onset.
In short, if the findings are consistent, then patients should get a few more precious months. As Kazia reports:
‘Progression-free survival (PFS) in this initial group of patients was determined to be 8.4 months. The existing standard of care, temozolomide, has a reported PFS of around 5.3 months.’
It may seem trivial, but for the victims, those extra three months are priceless.
The real goal though is to achieve meaningful rates of overall survival (OS). A criterion that has yet to be calculated but is looking promising.
Take this remark from Kazia’s CEO, Dr James Garner for example:
‘We see a clear signal that GDC-0084 (the drug) is providing clinical benefit in this group of patients.
‘Although it has not yet been possible to calculate overall survival, the fact that the majority of patients in the first stage of the study remain alive more than a year after diagnosis suggests that a meaningful OS benefit may emerge as the study matures.
‘That would be a remarkable finding.’
Highest highs, lowest lows
It’s important to note that biotech’s are renowned for their volatility. Both up and down.
While Kazia is riding high today, whether they are a good long term investment is impossible to tell. It will all depend on further data from this and other clinical trials.
That’s the risk you take when it comes to biotech stocks, though. It’s a market for speculators looking for a chance at massive gains.
To learn more about this niche sector, check out our full investor guide. You can grab a free copy for yourself, right here.
For Money Morning