PharmAust share price rises on promising trial outcome (ASX:PAA)
When it comes to tackling cancer, many biotech’s have tried and failed.
It’s been the ruin of many companies, both public and private, over many years. But that doesn’t stop more from trying each and every year.
Which is fantastic, because every now and then we at least make progress.
Today, PharmAust Ltd [ASX:PAA] is the latest in a long list to add to the field. Delivering a trial outcome that has helped lift the PAA share price as well hopes for a bigger breakthrough to come.
At the very least, it is bound to help man’s best friend…
PharmAust is currently in midst of testing its Monepantel tablets. A drug that they believe could offer a solution for managing cancer.
However, this trial doesn’t involve human patients. Instead, the drug is being tested in dogs first.
PharmAust already has plans to run human trials as well, it’s just not locked in just yet. But the good news is the canine trial has shown some promising results.
Today the company showed off its latest findings. In particular, the better response in this ‘pill’ trial compared to their last ‘liquid’ one. And to the surprise of PharmAust, one dog even saw strong signs of recovery:
‘Having the monepantel tablets achieve a 60% reduction in tumour burden in one dog, with one lymph node returning to normal, is a terrific and unexpected outcome.’
It may just be the trigger that gives this biotech the push it needs. Because despite the success of the trial, it was very narrow.
With only seven dogs included in the study, one of which failed to meet necessary protocol, what PharmAust really needs is more data. The kind of data that will only come from a Phase III trial.
So, once this current (Phase II) trial is finalised, that should be a very real possibility.
The next step
Naturally getting the monepantel treatment to a Phase III trial will be huge. Not only for use in canines, but also potentially to speed up human trials.
Obviously they can’t afford to rush the trials themselves, but positive data could help prioritise testing of the drugs in people. Whether the results will be as promising is the ultimate question.
Still, for this tiny biotech stock any win counts. And for shareholders it’s the kind of breakthrough that will put a smile on their face.
It’s yet another reminder of the explosivity of the biotech sector. A field that is filled with stocks that can make astonishing overnight gains. All it takes is one amazing trial result or discovery.
However, they can crash just as hard and fast as well…
That’s why investing in these speculative companies certainly isn’t for everyone. There is the potential for a lot of reward, but also a lot of risk. Which is why you need to stay informed.
Here at Money Morning, that’s what were all about. Bringing readers unique insights from across the market to help them make more informed investing decisions. If that sounds like something you’re interested in, then click here to learn more.
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