Shares of Tesaro (TSRO), an oncology-focused biopharma company, skyrocketed after the news that it has been working with advisors for a possible sale. The stock, which opened at $26.46 today, reached a maximum of $38.35 and jumped more than 30%. Because of the sudden spike, the trading of Tesaro shares was halted.
After Bloomberg reported that the company has been working with advisors for a possible sale, the stock skyrocketed and settled at $34.96 when the market closed on Friday. Last week on the same day, the stock plunged 19% after it released initial data from the Phase 1 AMBER study, which disappointed the investors.
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Following the buyout report, Tesaro’s rival Clovis Oncology (CLVS) also increased and was up 8.48% at $16.75 when the market closed today.
On Tuesday, pharma giants AstraZeneca and Merck (MRK) announced that FDA will review their regulatory application with priority for the label expansion of its cancer treatment therapy. Encouraged by this announcement, Tesaro’s shares, which has got a cancer drug named Zejula, rose 8%.
When the company reported Q3 financial results two weeks ago, its earnings surpassed consensus views, while revenue missed the estimates. Tesaro posted a loss of $2.49 per share on revenues of $64.4 million.
TSRO stock has dropped 58% in the year-to-date period and 60% in the past 52 weeks. Shares of the Waltham, Massachusetts-based company hit a 52-week low of ($23.41) last Friday and the yearly high ($89.72) on November 16, 2017.