Tomahawk, WI 7/30/2013 (Basicsmedia) – Synta Pharmaceuticals Corp. (NASDAQ:SNTA), a biopharmaceutical company, is a developer of small molecule drugs for treatment of cancer and inflammatory diseases. The Company had its shares sinking by nearly 12% in a week, indicating that its investors were expecting some bad news in its 2Q2013 results to be announced on Thursday, August 1, 2013. Having no significant products in the market and revenue not really noteworthy, nothing great was being expected out of the Company’s results for the quarter. Earlier, the pharma company had reported nil revenues in its 1Q2013, with a net loss of $20.7 million, or $0.30 per share, as against a net loss of$15.1 million, or $0.27 per share, for the same quarter last year.

However, the Company’s shares soared by a mention worthy 48% on the trading session of Monday, July 29, 2013. The Company announced that the ENCHANT-1 preliminary results had achieved pre-specified criteria for progressing on to the second stage of its trial. The study evaluates ganetespib monotherapy in patients with newly diagnosed breast cancer. Two of the initial five patients enrolled in the study had achieved objective tumour response within the three cycles of treatment. Of the initial ten TNBC patients enrolled, two had achieved objective tumor response and three had achieved SD following treatment with ganetespib monotherapy. Results from this study will be presented at a medical meeting to be held before the end of year 2013.

Ganetespib is being evaluated in more than 20 clinical trials including a Phase 3 trial in non-small cell lung adenocarcinoma, as well as other trials in lung, breast, colorectal, and hematologic malignancies. The study was supposed to advance to its second stage with at least one patient achieving objective tumour response, a symptom of reduction in tumour size. The company announced that it will further enrol up to 33 patients in each of the two patient groups being studied, and evaluate a combination of ganetespib and another cancer drug, paclitaxel.

Synta pharma is highly optimistic of the drug’s ability to treat different types of cancers. Triple-negative breast cancer is the fastest spreading and most difficult-to-treat cancer, as per the American Cancer Society. The success achieved by Synta in its study and trials may attract a big pharma company to partner with Synta.

The stock was awarded an ‘outperform’ rating by JMP’s Mike King with a target price of $11, and a solid ‘buy’ rating by Jefferies’ Thomas Wei with a target price of $22 per share earlier this month. The stock presently enjoys 7 ‘buy’ ratings and two ‘hold’ ratings, with an average target price of $11.75 per share.

As on Monday, July 29, 2013, the stock soared a massive 48% before closing at $7.15, 41.3% above its previous day’s close. In the aftermarket hours, the share prices went further up to $7.35, up 2.8%. The share traded in the range of $5.66 to $7.55 during the day with daily traded volume up by a massive 1250% at 21.97 million shares traded on Monday, against an average traded volume of 1.72 million shares per day.

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