Why Shares of Portola Pharmaceuticals, Inc. Soared

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What : Shares of the developmental-stage biopharma Portola Pharmaceuticals ripped higher by more than 14% at one point today on the back of positive clinical trial news for its experimental compound Betrixaban. Betrixaban is a specific inhibitor of human factor Xa and is presently being assessed as a potential treatment for the prevention of venous thromboembolism (VTE), or blood clots, in patients hospitalized for heart and lung-related illnesses.

Turning to the details, the company reported that an Independent Data Monitoring Committee recommended that the drug's ongoing late-stage trial dubbed "APEX" should continue as planned without modification.

What this means in layman's terms is that Betrixaban appears to be showing enough clinical benefit for this indication to allow the study to go on to completion.

While there is no guarantee that the drug will ultimately meet its primary measures of efficacy in the final analysis, investors are apparently relieved that it at least hasn't flamed out at an early check point for futility.

So what : According to the Surgeon General, VTE is one of the most preventable causes of in-hospital mortality in the United States. Despite significant reductions in VTE incidence rates using standard therapies, though, a large proportion of patients--especially those hospitalized for long periods of time--still suffer from blood clots after they are discharged, showing the need for new, more effective treatments.

Portola hopes that Betrixaban can become one of the first drugs approved for the prevention of blood clots in high-risk patients.

Now what : Betrixaban's ongoing late-stage study is reportedly more than 65% complete at the current time, with top-line results expected in early 2016. Although there will be about year's time before we know if it does indeed prevent blood clots in high risk patients, the drug's estimated target population of 20 million individuals living in G7 countries strongly suggests that it has blockbuster potential, making this mid-cap biopharma worth keeping tabs on going forward.

This coming blockbuster will make every biotech jealous

The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that could revolutionize not just how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. If you hope to outsmart Wall Street and realize multi-bagger returns you will need to get in early -- check out The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW .

The article Why Shares of Portola Pharmaceuticals, Inc. Soared originally appeared on

George Budwell has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.