Shares of Surface Oncology Inc. SURF, a clinical-stage biopharma company, gained more than 19% in the extended session on Tuesday.
What Happened: The spike in shares came after the Cambridge, Massachusetts-based company said Tuesday that one of its lead therapeutic candidates, SRF617, has received Orphan Drug Designation from the U.S. Food and Drug Administration for the treatment of patients with pancreatic cancer.
SRF617 is currently in Phase 1/1b clinical studies across a variety of solid tumors, including combination studies with gemcitabine and abraxane in patients with pancreatic cancer.
The FDA grants Orphan Drug Designation to drugs or biologics that are intended to treat a rare disease or condition, defined as one that affects fewer than 200,000 people in the U.S.
The government provides incentives to programs with Orphan Drug status in the form of partial tax credit for clinical trial expenditures, waived user fees and eligibility for seven years of marketing exclusivity.
See Also: Surface Oncology To Test SRF388 Plus Keytruda Combo In Solid Tumor Settings
Why It Matters: SRF617 is seen as having the potential to promote anti-tumor immunity in patients with pancreatic cancer. According to American Cancer Society estimates, about 60,430 people in the U.S. will be diagnosed with pancreatic cancer this year and the disease will claim about 48,220 lives.
Pancreatic cancer accounts for about 3% of all cancers in the U.S. and about 7% of all cancer deaths. It is slightly more common in men than in women.
Price Action: Surface Oncology shares closed 8.9% lower on Tuesday at $7.25, but rose almost 19.5% in the after-hours session.
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