Diamonds and Dogs
Turnaround Wednesday. Two days down, two days up. Now what? Most sectors and stocks were higher, but Tesaro (TSRO) had the best day of its trading life with the stock doubling thanks to great news from their phase 3 ovarian cancer trial. Tesaro reported data from its phase 3 NOVA trial, which was testing the ability of its lead compound, niraparib, to treat a few different types of recurrent ovarian cancer. The results were nothing short of fantastic. The study showed that niraparib significantly improved progression-free survival (PFS) in all three of the cohorts that were studied. Patients who were identified as carriers of the germline BRCA mutation demonstrated a PFS of 21 months, far longer than the 5.5 months for the control group. Great news for patients and great news for shareholders.
Thanks to Brexit, Wall Street forgot about the strain of the oil industry. Shares of Eclipse Resources (ECR) plummeted 17% to $3.43 after the company hiked their outlook for production and capital spending, but also announced a huge offering to raise money. The company will fund the capital expenditure plan with a public offering of 37.5 million shares priced at $3.50 per share or more than 10% of their market cap. Plenty of oil and gas companies are still struggling to survive.