Cogent Biosciences (COGT) Climbs to New Record High on Cancer Treatment Drug Trial

We recently published 10 Stocks Beating the Market with Eye-Popping Gains. Cogent Biosciences, Inc. (NASDAQ:COGT) is one of the best-performing stocks on Monday.

Cogent Biosciences soared to a new seven-year high on Monday, as investors cheered promising results of the last clinical trial phase that tested the efficacy of its drug candidate for a type of stomach cancer called Gastrointestinal Stromal Tumors (GIST).

At intra-day trading, the stock climbed to its highest price of $36.15 before paring gains to end the day just up by 119.03 percent at $32.46 apiece.

In an updated report, Cogent Biosciences, Inc. (NASDAQ:COGT) said it is set to file a new drug application with the Food and Drug Administration for its treatment candidate, bezuclastinib, in combination with sunitinib, after its phase 3 trial showed promising developments.

During the study, patients with Gastrointestinal Stromal Tumors (GIST) who took bezuclastinib in combination with sunitinib saw an average of 16.5 months without their cancer worsening, as compared with the 9.2 months for those who took sunitinib alone.

In addition, 46 percent of the patients who took the combo saw their tumors shrink, versus the 26 percent of patients who took sunitinib alone.

Cogent Biosciences, Inc. (NASDAQ:COGT) President and CEO Andrew Robbins said that the results surpassed the company’s expectations.

“With these incredible results, including a greater than seven-month improvement on mPFS (median progression-free survival)—reducing the rate of progression or death by half—the bezuclastinib combination is poised to become the new standard of care for treatment of second-line GIST patients,” he said.

Following the results, Cogent Biosciences, Inc. (NASDAQ:COGT) announced plans to raise $200 million through the issuance of convertible senior notes due 2031.

The notes will be general, unsecured, and will mature on November 15, 2031, unless earlier converted to cash or stocks, redeemed, or repurchased.

Proceeds will be used to repay $50 million outstanding loans, with the remainder to be used to fund the development and regulatory activities for the expected launch and commercialization of bezuclastinib, alongside other drug candidates.

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Disclosure: None. This article is originally published at Insider Monkey.