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Is FPRX Stock a Buy or Sell After Cancer-Drug Trial Data?

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On Nov. 11, Five Prime Therapeutics stock surged 237 percent after positive cancer trial results. The company said that its treatment for stomach cancer achieved all three of its efficacy endpoints in its phase 2 clinical trial.

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In the pre-market trading on Nov. 11, Five Prime Therapeutics stock rose more than 350 percent to $24 due to heavy volumes. Trading volumes surged to 2.9 million shares compared to the full-day average of nearly 659,000 shares. What is Five Prime Therapeutics’ stock forecast?

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What is Five Prime Therapeutics?

Five Prime Therapeutics is a clinical-stage biotechnology company. It discovers and develops innovative protein therapeutics to enhance the lives of patients with serious diseases.

On Nov. 11, Five Prime Therapeutics announced positive mid-stage clinical trial results for its gastric cancer drug candidate bemarituzumab. The company said the combination of bemarituzumab and chemotherapy beat out chemotherapy and a placebo on three pre-determined efficacy endpoints. The trial was conducted on patients suffering from non-HER2 positive (non-HER2+) front-line advanced gastric, fibroblast growth factor receptor 2b-positive (FGFR2b+), or gastroesophageal junction cancer.

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What is FPRX’s stock forecast?

FPRX stock rose 237 percent on Nov. 11 and closed at $18 with a market capitalization of $684.7 million. The stock is trading 25 percent below its 52-week high of $24 and 929 percent above its 52-week low of $1.75. Year-to-date, the stock had risen by 292 percent as of Nov. 11.

Currently, analysts' average stock price forecast for FPRX is $27, which suggests a 50 percent upside. The highest target price of $34 implies an 89 percent upside, while the lowest target price of $14 suggests a 22 percent downside. All of the nine Wall Street analysts tracking FPRX stock have a buy recommendation.

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FPRX on Stocktwits

FPRX stock has become a major talking point on Stocktwits. While some investors see the company's positive cancer trial results as a good reason to buy FPRX stock, others are bearish and expect the stock to fall.

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Is FPRX a good stock to buy?

FPRX stock is a buy due to the promising cancer trial results. Also, there could be upward movements in FPRX stock if bemarituzumab serves as a cancer therapy for several other types of diseases like ovarian cancer, pancreatic cancer, triple-negative breast cancer, and intrahepatic cholangiocarcinoma.

Several analysts increased their target prices on FPRX stock following positive cancer trial results. Wedbush increased its target price to $28 from $9 and maintained an outperformed rating. Wedbush analyst Robert Driscoll said he was impressed by the FIGHT study. Jefferies increased its target price to $23 from $8, while SVB Leerink increased its target price to $33 from $9.

Who owns Five Prime Therapeutics?

According to CNN, institutional investors own about 52.8 percent of the total shares outstanding of Five Prime Therapeutics. The top three owners are BlackRock Fund Advisors, Renaissance Technologies LLC, and Dimensional Fund Advisors LP.

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