For most stocks a double-digit gain in a single day is worthy of celebration. Invion Ltd [ASX:IVX] isn’t like most stocks though…
This biotech minnow has made a huge splash today. The Invion share price posting as much as a 200% gain in earlier trading.
Currently it has retreated back to a 112.5% gain. A fair pullback, but nonetheless incredible return.
So, what’s behind it?
Trading on high hopes
Invion’s surge, as with most biotechs, is due to a key trial result.
Their treatment technology ‘Photosoft’ has seemingly proven itself quite effective at tackling cancer. Specifically, it managed to shrink the size of ovarian cancer tumours by half or more.
Not only killing off the toxic tissue, but doing so without any apparent side effects.
Here is what the head of the Ovarian Cancer Research at Hudson Institute, Dr Andrew Stephens, had to say on the matter:
‘These results suggest that Photosoft Technology may be an effective method to achieve targeted tumor destruction. Over the coming months we will be working with the Photosoft Technology to characterize how tumor destruction and immune response are linked, paving the way for clinical trials using Photosoft Technology as a cancer therapy.’
In other words, this could be a genuine turning point for cancer treatment. That is if, Photosoft can back up these initial results with more good data.
Is Invion worth an investment?
As the market move suggests, clearly traders are excited at Invion’s potential. If their technology lives up to the hype it could be incredibly profitable.
However, we would urge caution before you invest any money in this stock.
It is important to note that pre-clinical data is just the first step in a long process. Plenty of drugs and treatments show promise in these early stages only to fizzle out.
For instance, treating cancer in mice isn’t all that rare. It has been done countless times. But, that success rarely translates in human trials.
We are two very distinct animals with specific cellular systems.
For this reason you may want to weigh up whether this stock is the right investment for you. It is highly speculative and incredibly risky. A facet that can be both a boon and a curse when it comes to biotech stocks. We regularly discuss Biotech stocks and major trends in health care in our daily publication – go here to find out what Money Morning is all about.
Still, despite my pessimism, we can’t overlook the progress Invion has made. Hopefully, they can provide a new and better way to treat this deadly disease.
And if they do, then more triple-digit gains or greater may be in this stocks future.
For Money Morning