Shares of XBiotech (NASDAQ:XBIT) are up almost 25% this morning in pre-market trading, after the company has announced positive results for their Colorectal Cancer therapy, Xilonix in European Phase II Studies. Xilonix, which is a therapy intended for patients suffering from symptomatic, advanced colorectal cancer, seems to be showing some “breakthrough” results.
As many of you may know, just this past Thursday, Gainey McKenna & Egleston announced a class action lawsuit against the biotech firm, on behalf of individuals who had purchased the stock during a specific time period. They are claiming that the company issued false and misleading statements to their investors regarding this very drug.
XBiotech (NASDAQ:XBIT), today though, has released their latest news touting the benefits of Xilonix, with CEO John Simard saying, “We are gratified to announce these findings with Xilonix. The ability of Xilonix to help improve the health of patients with cancer has been demonstrated. We look forward to seeking approval to deliver this unprecedented cancer agent to patients.”
According to the release, the company saw a significant increase in response for patients who have been treated with Xilonix, in comparison to those who were merely given the placebo. Approximately 33% of the 207 patients who were randomized to Xilonix met responder criteria, compared to less than 19% of the 102 placebo patients. There were 333 patients involved in the study, of which 24 failed to receive Xilonix or the placebo. This gorup was excluded from the data.
XBiotech (NASDAQ:XBIT)’s drug is supposed to work by blocking inflammation. This inflammation is believed to help the tumore develop, spread and cause unwanted symptoms in patients. While this study does seem rather promising, it should be interesting to follow the company to see what comes about with this drug.
Shares of XBiotech (NASDAQ:XBIT) closed at $8.61 on Friday, and are trading up 24.85% in pre-market trading ($2.14).