Cubist Pharmaceuticals Inc (CBST), Trius Therapeutics, Inc. (TSRX): This Week in Biotech

Clinically positive
The news was also generally positive on the clinical data front with Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) and Synta Pharmaceuticals Corp. (NASDAQ:SNTA) claiming big gains this week.

Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) shares rocketed higher by 50% in just a three-day span following word from the Food and Drug Administration that it would give tasimelteon, the company’s sleep-disorder drug aimed at treating non-24-hour disorder, a priority review. That’s good news because it speeds up the review process and could signal to shareholders a good potential for approval. Since there isn’t currently an approved treatment for non-24-hour disorder, tasimelteon could effectively take all market share and may be able to generate peak sales in excess of $200 million. Obviously, investors should take this one step at a time, but this is exciting news for Vanda’s shareholders.

For Synta Pharmaceuticals Corp. (NASDAQ:SNTA), it skyrocketed this week following results from a mid-stage study of experimental breast cancer drug ganetespib, which demonstrated that four patients achieved an objective tumor response (the primary endpoint which would have initiated an expansion of the trial was just one objective tumor response as outlined by the trial design). Because of its apparent success in shrinking tumors, Synta is expanding its trial and combining its experimental drug with Paclitaxel. Ganetespib is also being tested as an experimental lung cancer treatment which is currently in late-stage trials. It’s probably a bit too early to start counting your chickens as late-stage trials can sometimes go completely in the opposite direction from mid-stage results, but ganetespib definitely merits a close eye.

The article This Week in Biotech originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article.

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