AVEO stock continued to gain momentum in Tuesday’s session and was recently trading up by 13.50% to $1.26 USD, extending its winning streak for the third straight session. Shares of AVEO Pharmaceuticals (NASDAQ:AVEO), a biopharmaceutical company, are up over 115% since March 26th, 2019 amid several new developments.
Last week, AVEO stock was moving up on rumors that the company may be acquired by AstraZeneca PLC (NYSE:AZN) in the second quarter of 2019.
Moreover, today’s extended rally has been driven by the announcement of positive results from a trial related to acute myeloid leukemia.
Positive Results From AML Trial
Late Monday, AVEO Pharmaceuticals said at the American Association for Cancer Research that a combination of ficlatuzumab and cytarabine led to attractive tolerability in patients with relapsed and refractory AML.
“Patients with AML who are refractory to induction therapy or relapse within one year have poor outcomes,” said Dr. Charalambos Andreadis, director of the trial. “Elevated serum HGF level is an adverse prognostic factor, and these results demonstrate that the anti-HGF antibody ficlatuzumab combined with cytarabine holds potential to affect outcomes in patients with relapsed or refractory AML.”
Acquisition Rumors Hitting All Around
Last week, AVEO stock saw increased volatility following hedge fund manager BlueLion blogging that, according to representatives from several investment banks, AstraZeneca will make a bid for the oncology player next quarter.
Additionally, FOTVIDA is nearing approval by the FDA as a kidney cancer medication, which could go well with the acquisition rumors. AstraZeneca is already in collaboration with AVEO for the clinical evaluation of safety and efficacy of FOTIVIDA in combination with its IMFINZI as a monoclonal antibody for the programmed death ligand 1. This collaboration also helps to cement the claim.
FOTIVIDA already has approval from the European Union as a first-line treatment for renal cell carcinoma according to the new clinical practice guidelines from the European Society of Medical Oncology.
The acquisition is estimated to be between $800 million and $1.2 billion. The speculation about the acquisition has caused AVEO stock price to surge, which is encouraging after experiencing a drop at the end of January.
At this time, AVEO Pharmaceuticals stock plummeted 56.7% against the industry’s 9.6% gain after the company indicated that it was delaying filing for its US marketing application for FOTVIDA. The company decided not to file an NDA after the FDA stated that it was not convinced with the overall survival data that was presented in November 2018.
Initially, the company had plans of submitting the NDA in the first half of this year, but it has since moved the final overall survival analysis to August 2019.
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