Celator (CPXX) Pharmaceutical Stock Quadruples on Positive Results From Leukemia Drug

Shares of Celator Pharmaceuticals, Inc. (CPXX) were trading up +7.56 or +450.00 percent to $7.56 per share in Tuesday’s premarket after the company announced positive results in a Phase 3 clinical trial for its leading drug candidate, VYXEOS yesterday after the market close. Celator Pharmaceutical stock closed at $1.68 per share, up +0.15 or +9.80 percent in Monday’s regular trading session.

Founded in 1999 by Lawrence Mayer, Princeton, New Jersey based Celator Pharmaceuticals, Inc. is a biopharmaceutical company primarily focused on cancer treatments.

The company’s proprietary technology platform, CombiPlex, identifies the optimum synergistic ratio of component drugs to form most effective combination of treatments into a single product. The company’s main product candidate, VYXEOS (cytarabine: daunorubicin) Lyposome for Injection is used in the treatment of patients with acute myeloid leukemia or AML.

Celator’s pipline includes other CombiPlex programs including CPX-1 (irinotecan:floxuridine), CPX-1 is Liposome for Injection for treating colorectal cancer; and CPX-8, a hydrophobic docetaxel prodrug nanoparticle formulation, which is being studied by the National Cancer Institute’s Nanotechnology Characterization Laboratory. The company had their initial public offering in May of 2013, raising $32.5 million selling over 10 million shares at $3.116 per share.

The Phase 3 study on over 300 elderly patients with secondary high risk AML showed patients treated with VYXEOS had a 31 percent reduced risk of death. VYXEOS is a reformulated version of the cytarabine-danurobicin chemotherapy cocktail commonly known as 7+3 due to the dosing regimen, which has been used for decades in treating elderly patients with AML.

The primary endpoint in the study was survival of the patients, which was achieved with a survival benefit of 3.6 months for patients taking VYXEOS, a statistically significant amount of time compared to the 7+3 patients. According to Celator, within 60 days of initiating treatment with VYXEOS, 14 percent of patients died compared to 21 percent of patients taking the 7+3 regimen.

Dr. Jeffrey E. Lancet, a specialist in blood cancer at the Moffitt Cancer Center and principal investigator for the study said in a statement that, “The overall survival advantage seen with CPX-351 [Vyxeos] compared to 7+3, along with a superior response rate and no increase in serious toxicity indicates that we'll likely have a new standard of care for treating older patients with secondary AML”.

Based on the results of the study, Celator expects to seek regulatory approval of VYXEOS in the United States and the European Union later this year. If approved, the company believes it can achieve sales of $200 million to $270 million based on the subset of patients with AML that enrolled in the Phase 3 study, with sales of $690 million to $780 million if treatment is expanded to other AML patient populations.

In related news, Roth Capital, which has a “buy” rating on Celator stock, raised its price target from $18 per share to $22 per share this morning. In addition, analyst HC Wainwright gave a “buy” recommendation and increased their price target on Celator shares from $7.00 to $20.00.

Other News About CPXX

CPXX: Celator is ready to Commercialize VYXEOS™

Company was preparing for yesterday’s results last month.

StreetSweeper Negative On Celator, Said Good Story Won't Last

Shares tanked two weeks ago due to the analyst’s comments.

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Published on Mar 15, 2016
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2016. Content published with author's permission.

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