MEMPHIS, Tenn. (AP) -- Shares of GTx Inc. jumped Tuesday after the company said regulators will allow it to restart clinical testing of its prostate cancer drug Capesaris.
The company said it will start a new mid-stage trial of Capesaris during the third quarter of 2012. The trial will evaluate Capesaris as a secondary treatment for advanced prostate cancer that has not responded to hormone treatment. GTx said it will test three doses of Capesaris on 75 men.
GTx stock gained 28 cents, or 9 percent, to $3.38 in afternoon trading. The Memphis, Tenn., company focuses on developing treatments for cancer and other serious medical conditions.
The FDA ordered GTx to stop clinical trials of Capesaris in February because GTx told the agency that patients who took the drug had an increased risk of blood clots. The company stopped enrolling and treating patients, and said it would test lower doses of Capesaris as a second treatment for prostate cancer. It was studying Capesaris as a primary and secondary treatment for the disease.
Shares of GTx had dropped 47 percent since the previous Capesaris trial was stopped, including a 36 percent plunge on Feb. 21, the day the halt was announced.
GTx also reported its first-quarter results Tuesday. The company said it lost $11.1 million, or 18 cents per share, after taking a loss of $2.6 million, or 5 cents per share, a year ago. Its revenue shrank to $1.8 million from $9.3 million. A year ago, Ipsen Biopharm Ltd. paid GTx $8.1 million when the companies agreed to end a collaboration.