ArQule Inc shares jumped 19 percent on hopes that additional data from a discontinued trial could revive its experimental drug, tivantinib, as a treatment for lung cancer.
Last October, ArQule and Daiichi Sankyo Inc stopped a late-stage trial of tivantinib to treat lung cancer after determining that the drug did not improve patient survival.
ArQule is expected to present additional data from the trial at the European Society of Medical Oncology (ESMO) conference in Amsterdam, according to RBC Capital Markets analyst Adnan Butt.
Details from the lung cancer trial "could validate the mechanism of action for the drug and potentially allow a path forward in lung cancer as well," Butt said. The drug is currently being studied as a treatment for hepatocellular carcinoma - the most common form of liver cancer.
"If tivantinib development seems likely to continue in lung cancer, that's a positive," he added.
The drug has also failed a mid-stage trial on patients with colorectal cancer.
Shares of the company were trading up 14 percent at $2.83 in morning trade on the Nasdaq.
(Reporting by Shailesh Kuber; Editing by Sreejiraj Eluvangal)