Why did Prometheus Biosciences (RXDX) stock surge today?

December 07, 2022 07:37 AM PST | By Rupam Roy

Why did Prometheus Biosciences (RXDX) stock surge today? — Image source: © Charon | Megapixl.com

Why was it rising?

Prometheus Biosciences Inc. is a biotechnology firm, which focuses on the development of precision therapeutics for immune-mediated diseases. The clinical-stage biotechnology engages in discovering, developing, and commercializing novel therapeutics and companion diagnostic products for treating immune-mediated conditions.

The company's stock noted significant gains on Wednesday, after reporting positive results from the clinical trials of its product portfolio. The company said that it had generated results from ARTEMIS-UC Phase 2 and APOLLO-CD Phase 2a studies of PRA023 which demonstrates strong efficiency and favorable safety results in the studies.

Depending on the whole data from these studies, the California-based firm sought to advance its PRA023 into Phase 3 studies for colitis and Crohn's-related disorders in the coming year.

Investors might have lauded the announcement of the US$ 4.34 billion market cap firm. The company now aims to advance into pivotal development in 2023, after discussing with regulators.

Prometheus Biosciences said that it would present the full data sets from these two studies at a future medical meeting.

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Bottom line:

The price of the RXDX stock was up 186.47 per cent at 9:38 am ET on December 7, to trade at US$ 103.3, while its trading volume was over 2.95 million at the same time. The stock closed at US$ 36.06 on December 6.

Meanwhile, Prometheus Biosciences' collaboration revenue was US$ 968,000 in Q3 FY22, as compared to US$ 1 million in Q3 FY21. The net loss of the firm deteriorated to US$ 37.27 million in Q3 FY22, from US$ 27.33 million in the year-ago period.

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