Stock Market Today, Jan. 20: Corvus Pharmaceuticals Surges After Positive Phase 1 Eczema Drug Data

Corvus Pharmaceuticals (NASDAQ:CRVS), an immuno-oncology and dermatology drug developer, closed Tuesday at $21.41, up 165.96%. The stock moved higher after Phase 1 soquelitinib data in atopic dermatitis (eczema) showed strong efficacy and clean safety, and investors are watching further development of the eczema program.
Trading volume reached 82 million shares, about 3,032% above its three-month average of 2.6 million shares. Corvus Pharmaceuticals IPO'd in 2016 and has dropped 44% since going public.

How the markets moved today

The S&P 500 fell 2.06% to 6,797, while the Nasdaq Composite lost 2.39% to finish at 22,954. Among biotechnology names, Olema Pharmaceuticals closed at $26.72, up 1.79%, while Ventyx Biosciences ended at $13.88, up 0.14%, as investors gauge drug development pipelines.

What this means for investors

Corvus rocketed higher today after it released Phase 1 soquelitinib data for treating eczema, showing excellent patient responses with no serious adverse events. Management plans to move on to a Phase 2 trial later this quarter. Today’s success, paired with soquelitinib’s potential to help with lymphoma, gives the company an intriguing future for healthcare-savvy investors to monitor.

Following the stock’s rise today, management announced a $150 million share offering, along with pre-funded warrants, to capitalize on the stock’s more than doubled share price. Before today, Corvus Pharmaceutical’s market cap was less than $500 million, so the news is a significant boon for the company. That said, the company is still pre-revenue, so investors should be cautious when buying this biotech as nothing is yet guaranteed.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.