Array BioPharma Inc. [NASDAQ: ARRY] shares went ballistic on heavy volume yesterday on May 21, 2019, following news that the company may have developed a therapy combination that will revive colon cancer patients’ hope for longer life. At the close of the session on Tuesday, ARRY was trading higher at $25.77 up 22.95% following a +4.81 relative change. Nasdaq’s real-time quote for the stock shows that it had previously closed at $20.96. It formed an intraday high at $26.82 while it hit a low on the trading day of $21.94. ARRY has a 52-week high set at $25.05 with a low of $12.56 in the same period.
Meanwhile, 20,305,590 shares were exchanged along the day with the 50-day average daily volume standing at 2,347,672. Array BioPharma Inc. currently has a market cap of $5.7 billion.
The recent surge is directly linked to the results of a clinical trial for cancer patients. The results hint that Array BioPharma Inc. could have cracked the treatment for colon cancer patients without the need to have patients going through the dreaded chemotherapy process. The regimen has been tailored to target genetic mutation even for the patients with advanced cases of the disease.
According to the results the solution that combines therapy, has been able to help patients suffering from colon cancer live much longer. As reported by Bloomberg Array BioPharma Inc.:
“Triple combination therapy from helped colon cancer patients live longer in an interim analysis of more than 600 patients whose BRAF-mutant colon cancer had returned showed those getting Braftovi, Mektovi and Eli Lilly & Co’s Erbitux together survived for 9.0 months while those getting just Erbitux with chemotherapy lived for 5.4 months. Patients getting Braftovi and Erbitux lived 8.4 months.”
Results of the first 331 patients in the clinical trial had their tumors shrink for 26% for those patients put on the triplet, 20% of the patients getting the doublet and only 1.9% for the patients that were on chemotherapy as well as Erbitux. At the same time, the response rate up 34% for the patients that had been put on all the three drugs but had in the past been prescribed to receive only one therapy.
There has been fresh interest in the shares of ARRY following the new results. Array BioPharma Inc. is preparing to forward the results of the trial to the regulatory agencies during the second half of the year.
[NASDAQ:ARRY] Technical Picture and Chart
A glance at the hourly chart for this trading pair, we see a retracement from the highs achieved yesterday. The correction and or a small correction may continue on Wednesday after the market opens. The RSI has changed its direction to the south to show that the growing bearish momentum would continue. However, on the other hand, the MACD at +0.9 is moving higher and the volume has surged with the bulls taking over ARRY yesterday which means this stock still has legs.
However, support is required above $25.00 for a higher correction in the short-term. The filing of the results of the trial with the regulatory agencies will ensure that investor interest remains. Technically if ARRY can stay above the $25+ range as its new support level, it could continue this new uptrend in the near term.