Biotech stocks up after drug makers report positive cancer data at ASCO

Biotech stocks jumped on Monday after pharmaceutical companies reported positive test results on experimental drugs, signaling groundbreaking treatments for some of the world's most severe cancers.

SPDR S & P Biotech XBI, an ETF that follows the largest companies in the sector, gained 1.3% in intraday trading, as did its first positive day in five. The sector, led by the anti-cancer drug company Mirati Therapeutics, up more than 34%, is the best of its day for almost two years. Nektar Therapeutics grew by 12%, its best day of the year.

Mirati stock rose after Amgen presented positive data Monday in Chicago at the meeting of the American Society of Clinical Oncology of 2019.

Amgen researchers have stated that an experimental drug targeting a mutated form of the gene, KRAS, had reduced tumor growth during a small clinical trial conducted in patients with anemia. lung cancer. Scientists believe that mutations of KRAS are at the origin of cancer. It is found in some patients with lung cancer, pancreatic cancer and colorectal cancer. These data were considered positive for Mirati, a smaller biotech company that is also developing drugs that target KRAS mutations.

"We believe the results of Amgen's Phase 1 should indicate a positive performance for Mirati," said Varun Kumar, an analyst at Cantor Fitzgerald, of Wall Street. The result of Amgen "reflects a higher probability of a positive reading" for the drug blocking the Mirati KRAS mutation.

Nektar Therapeutics also rallied after the researchers presented data to ASCO on Saturday. The San Francisco-based biotechnology company said its experimental melanoma therapy, bempegaldesleukin, associated with Bristol-Myers Squibb's Opdivo, had helped a small number of patients with advanced skin cancer after One year.

Biotech stocks have fallen over the last three months due to health sector concerns as a whole, Washington legislators could make significant changes to the health care landscape. Despite concerns, the biotechnology sector has been up about 12% since the beginning of the year, compared to 9% for the S & P 500.

-Gina Francolla from CNBC contributed to this report.