Daiichi Sankyo Co. experienced a significant surge in its stock value following the U.S. Food and Drug Administration's (FDA) approval of Datroway, a new treatment for advanced breast cancer. The stock climbed as much as 8% in early morning trading in Tokyo, marking the company's largest intraday gain since August 6.
Datroway, jointly developed by Daiichi Sankyo and AstraZeneca, is indicated for adult patients with breast cancer that is unresectable or metastatic, and who have previously received hormone therapy and chemotherapy. The Japanese government had previously approved the drug in late December.
Jefferies analysts noted that while they had anticipated a 65% chance of FDA approval, market optimism appeared lower. They also highlighted that this approval bodes well for the drug's potential in treating triple-negative breast cancer, a subtype known for its difficulty in treatment.
The FDA approval marks a crucial step for Daiichi Sankyo as it aims to establish Datroway as a widely used blockbuster treatment. The drug's approval offers a new option for patients with advanced breast cancer who have progressed after prior lines of therapy.
