Nkarta stock skyrockets on heavy volume after upbeat results from cancer-treatment trial

Shares of Nkarta Inc. skyrocketed 92.8% in very active morning trading, enough to make the stock the biggest gainer and most active listed on major U.S. exchanges, after the biopharmaceutical company announced positive results from a Phase 1 trial of its cancer treatments. The rally comes after the stock closed at a record low of $7.77 on Friday. The company said its NKX101 and NKX019 co-lead candidates showed "striking single-agent activity" in a heavily pretreated patient populations, with an "exceptional safety provide" without side effects associated with CAR T cell therapies. Cowen analyst Salim Syed reiterated his buy rating and $81 stock price target, which implies TK% upside from current levels. "Investor sentiment was pretty low going into this readout," Syed wrote in a note to clients. "And of course, we still need durability data and more n, but showing these responses today, is a major plus, and street trading valuations should now move substantially higher for both programs." The stock has now lost 2.4% year to date, while the iShares Biotechnology ETF has dropped 19.7% and the S&P 500 has declined 11.1%.

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