The value of micro cap stock for Astex Pharmaceuticals, Inc. (NASDAQ:ASTX) rose during trading on Wednesday, as the company's announcement that it received clearance to commence a clinical trial for one of its products positively affected investor sentiment.
According to a company release, the Fibroblast Growth Factor Receptor (FGFR) kinase inhibitor from Janssen Pharmaceutica NV and Astex received Phase I clinical trial approval.
This approval triggers a milestone payment from Janssen to Astex of $5.4 million, and this news led to the increase in the company's stock.
"We are delighted that Janssen has received approval to commence a Phase I study on this FGFR kinase inhibitor, a drug that has the potential to address a significant area of unmet medical need," said the company's president Harren Jhoti. "This milestone underscores how effective collaborations between leading research institutions, biotech companies and pharmaceutical partners can be in delivering new drug candidates for patients."
The company also saw several other clinical stage oncology drugs receive approval earlier this year, according to Seeking Alpha.
Shares of Astex Pharmaceuticals rose $0.10 to $1.92 at 1:13 p.m. on June 13, an increase of 5.5 percent.