Shares of Medivation Inc. jumped Tuesday after the drug developer said a committee monitoring a study of its prostate cancer treatment Xandi stopped the trial early because of the drug's effectiveness.
THE SPARK: The San Francisco company said an independent committee monitoring a late-stage study of Xandi recommended that the trial should be halted and that patients taking a placebo, or fake drug, should start receiving Xandi.
The company said Xandi, also known as enzalutamide, generated a statistically significant overall survival advantage when compared to the placebo in an international study of more than 1,700 men with advanced prostate cancer who had not received chemotherapy.
Medivation plans to seek approval next year for what would be an expanded use for Xandi.
THE BACKGROUND: The Food and Drug Administration already has approved Xandi as a treatment for cancer that has spread beyond the prostate in patients who have received the chemotherapy drug docetaxel.
Medivation developed Xandi with financial and research support from Japanese drugmaker Astellas Pharmaceuticals. The companies share the marketing costs and profits from the drug.
SHARE ACTION: Medivation shares rose 4.1 percent, or $2.02, to $51.84 in Tuesday morning trading, while broader stock exchanges rose less than 1 percent. The stock has traded between $41.89 and $61.46 over the past year.