What happened
Shares of CTI BioPharma (NASDAQ: CTIC) moved sharply higher after the drugmaker reported first-quarter results Friday morning. Investors were pleased with the initial sales figures for Vonjo, its first approved drug, and pushed the stock price 20.8% higher as of 11:22 a.m. ET.
So what
On March 1, 2022, the FDA approved Vonjo to treat patients with myelofibrosis, a rare bone marrow disorder. During the clinical trial that led to its approval, 29% of patients treated with Vonjo achieved a significant improvement compared to just 3% of the placebo group. How well those study results would translate into product sales, though, was uncertain.
Despite launching during the last month of the three-month period, sales of Vonjo reached $2.3 million during the first quarter, and investors expect a great deal more before the year is through. Jakafi, a competing myelofibrosis treatment from Incyte (NASDAQ: INCY), is a blockbuster that generated $2.1 billion in sales last year.
Image source: Getty Images.
Now what
CTI BioPharma is still losing money hand over fist but it’s probably just a matter of time before it has positive cash flow to report. The National Comprehensive Cancer Network recently named Vonjo as a recommended treatment for different groups of myelofibrosis patients who aren’t eligible for bone marrow transplants.
CTI BioPharma and biotech stocks across the board have been having a hard time getting investors’ attention recently. As a result, it looks like a bargain right now. Even after Friday’s big gain, the biotech company still sports a modest market cap of just $451 million. If Vonjo’s sales get anywhere close to those of competing treatments, investors who buy CTI BioPharma stock at this price could reap some impressive gains.
Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Incyte. The Motley Fool has a disclosure policy. –
What happened
Shares of CTI BioPharma (NASDAQ: CTIC) moved sharply higher after the drugmaker reported first-quarter results Friday morning. Investors were pleased with the initial sales figures for Vonjo, its first approved drug, and pushed the stock price 20.8% higher as of 11:22 a.m. ET.
So what
On March 1, 2022, the FDA approved Vonjo to treat patients with myelofibrosis, a rare bone marrow disorder. During the clinical trial that led to its approval, 29% of patients treated with Vonjo achieved a significant improvement compared to just 3% of the placebo group. How well those study results would translate into product sales, though, was uncertain.
Despite launching during the last month of the three-month period, sales of Vonjo reached $2.3 million during the first quarter, and investors expect a great deal more before the year is through. Jakafi, a competing myelofibrosis treatment from Incyte (NASDAQ: INCY), is a blockbuster that generated $2.1 billion in sales last year.
Image source: Getty Images.
Now what
CTI BioPharma is still losing money hand over fist but it’s probably just a matter of time before it has positive cash flow to report. The National Comprehensive Cancer Network recently named Vonjo as a recommended treatment for different groups of myelofibrosis patients who aren’t eligible for bone marrow transplants.
CTI BioPharma and biotech stocks across the board have been having a hard time getting investors’ attention recently. As a result, it looks like a bargain right now. Even after Friday’s big gain, the biotech company still sports a modest market cap of just $451 million. If Vonjo’s sales get anywhere close to those of competing treatments, investors who buy CTI BioPharma stock at this price could reap some impressive gains.
Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Incyte. The Motley Fool has a disclosure policy.
