AVEO Pharmaceuticals Still Has Faith In Tivozanib
While the FDA has rejected the New Drug Application for tivozanib in the past based on inconsistent study results, AVEO remains hopeful that tivozanib will be approved one day.
Today, the company announced that it sought FDA guidance about a new 314-subject Phase III trial assessing the drug as third-line treatment in advanced RCC. The response the company received is the general response from the FDA stating that the data “may support” the indication. However, it will all come down to a review.
How The Market Is Reacting To The News
As mentioned above, AVEO Pharmaceuticals is having a great day in the market today. After the break of the tivozanib news, the stock started to climb. While we’ve seen a bit of turbulence on the way to the top, we’ve seen incredible gains today. Currently (12:36), AVEO is trading at $2.45 per share after a massive gain of 53.19% so far today.
What We Can Expect To See From AVEO Moving Forward
When it comes to AVEO, I think that we’re going to see more gains in both the short and long term from the stock. Here’s why…
- Short Term – Investors are obviously excited about the tivozanib news. As a result, they’ve pushed the stock more than 50% higher today. Because movement in the market is a series of overreactions, we can expect to see a slight dip sometime soon. However, that dip may prove to be the perfect buying opportunity!
- Long Term – There’s no doubt that AVEO has been dealt a bit of a bad hand recently. First, there was the FDA rejection of tivozanib for kidney cancer, then the breast cancer study got nixed as a result of poor enrollment numbers, and the company has faced more issues. However, the management of the company has a clear goal and more importantly, they are clearly determined to see that goal through. Today’s news represents the fact that AVEO doesn’t plan on giving up and that they know tivozanib can be effective in improving the quality of lives for patients…now, they simply need to figure out the niche for the drug. Over time, I’m expecting to see gains.