Should You Watch This Biotech Stock After The Correction
G1 TherapeuticsInc. (NASDAQ:GTHX) has been soaring high since the beginning of the year but it took a dip last month. The shares dropped 37% as investors responded to trial results of the company’s cancer drugs.
G1 TherapeuticsInc. (GTHX): A Biotech Stock To Buy Or Sell?
GTHX stock tanked 33% on September 30 alone. This was after the company released two separates updates. However, the data did not show a complete disappointment with the cancer drugs. The drop came on the back of the stock soaring almost 70% since the beginning of the year.
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The data G1 released on average overall survival in the treatment of metastatic breast cancer patients was uninspiring. The overall survival for patients treated with trilaciclib cancer drug in the second phase trial was around 20 months. This was relative to approximately 12 months for those under therapy.
On a separate instance which perhaps justified the selloff, the company released the first and second phase dose-escalation trial results. This was for patients with HER2-negative breast cancer. G1 reported that the G1T48 cancer drug demonstrated anti-tumor response and was well tolerated in profoundly pre-treated subjects.
Disappointingly the benefit rate clinically from the results for patients exhibiting complete and partial response and stable illness for around 24 weeks in all dosages was 15.8% only. This is just around three patients out of 19 treated subjects with G1T48.
New Drug Application
G1 has indicated that it will submit a new drug application for trilaciclib in Q4 for treatment of small cell cancers. The company targets completion of the submission in Q2 2020. G1 has equally commenced preliminary consultations with the FDA for the development of trilacicilib in the treatment of metastatic breast cancer.
With G1T48, the company has selected two most active doses that they will evaluate further in the first part of the second phase study. They are hoping to commence first-line third phase studies using data of the cancer drug next year.
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The results were nonetheless not indicative of huge successes. Considering the company’s meteoric rise since the beginning of the year its stock could still get back some of the gains.
