Shares of CTI BioPharma (NASDAQ: CTIC) moved sharply higher after the drugmaker reported first-quarter results Friday morning. Investors were pleased with the initial sales figures for Vonjo, its first approved drug, and pushed the stock price 20.8% higher as of 11:22 a.m. ET.
On March 1, 2022, the FDA approved Vonjo to treat patients with myelofibrosis, a rare bone marrow disorder. During the clinical trial that led to its approval, 29% of patients treated with Vonjo achieved a significant improvement compared to just 3% of the placebo group. How well those study results would translate into product sales, though, was uncertain.
Despite launching during the last month of the three-month period, sales of Vonjo reached $2.3 million during the first quarter, and investors expect a great deal more before the year is through. Jakafi, a competing myelofibrosis treatment from Incyte (NASDAQ: INCY), is a blockbuster that generated $2.1 billion in sales last year.
CTI BioPharma is still losing money hand over fist but it’s probably just a matter of time before it has positive cash flow to report. The National Comprehensive Cancer Network recently named Vonjo as a recommended treatment for different groups of myelofibrosis patients who aren’t eligible for bone marrow transplants.
CTI BioPharma and biotech stocks across the board have been having a hard time getting investors’ attention recently. As a result, it looks like a bargain right now. Even after Friday’s big gain, the biotech company still sports a modest market cap of just $451 million. If Vonjo’s sales get anywhere close to those of competing treatments, investors who buy CTI BioPharma stock at this price could reap some impressive gains.
10 stocks we like better than CTI BioPharma
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and CTI BioPharma wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 7, 2022
Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Incyte. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.