Stock in Lixte Biotechnology Holdings (Nasdaq: LIXT) surged around 76% in early Wednesday trading following positive news from a preclinical study looking at a lead clinical compound LB-100, a protein phosphatase inhibitor that has been found to increase the responsiveness of diverse cancers to levels of immunotherapy.
The clinical-stage pharmaceutical company specializes in discovering drugs for the effective treatment of a variety of cancers and other life-threatening diseases. In this particular instance, Lixte has focused on the switches that activate biochemical pathways in cells, but more specifically, the ‘off’ switch’ – which has, for the most part, been neglected by cancer studies as it was believed to cause intolerable levels of toxicity in suffering patients.
Well, today’s breakthrough study has proved otherwise, achieving its first clinical compound and PP2A (off switch) inhibitor – LB100; demonstrating that this compound is, in fact, tolerable in patients at doses associated with anti-cancer activity.
Lixte Founder and CEO, John S. Kovach M.D, stated:
“The results of Yen et al. raise the possibility that the addition of LB-100 to immunotherapy may be a simple way to convert ‘cold’ into ‘hot’ tumors, thereby increasing the percentage of patients responsive to immunotherapy”
Investors reacted well to the news today, with the stock still sitting comfortably at a daily gain of 70%. Price is trading around the $2.30 level.
Healthcare stocks, including Lixte shares, saw a wave of investors buy their shares during the pandemic. Governments also pumped money into the companies in an attempt to speed up the vaccine process. But, what happens now vaccines have been approved and the pandemic is becoming less prominent? Should we still invest in coronavirus-focused healthcare stocks? Or should we look to firms tackling other areas? Here are the best healthcare stocks to buy now…
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.