This pharmaceutical company got great news about its cancer-fighting drug and now the stock is up over 300%

A small biopharmaceutical company just got great news on a new drug and the stock is up an absolutely staggering amount.

Celator Pharmaceuticals announced late Monday that its drug, Vyxeos, which treats a type of blood cancer tested well and was being prepared for submission to the Food and Drug Administration.

“Based on these results the company expects to submit a New Drug Application (NDA) for VYXEOS with the U.S. Food and Drug Administration (FDA) later this year and submit a Marketing Authorization Application (MAA) with the European Medicines Agency (EMA) in the first quarter of 2017,” said a release from the company.

Vyxeos shows positive results in reducing mortality rates over 60 days in patients with High-Risk Acute Myeloid Leukemia (AML) to 13.7% from 21.2% in the control.

In response to the news, the stock shot up opening up over 386% on Tuesday. While it is a small company, its market cap is now just under $300 million and an increase of over 300% for any stock in a single day is staggering, no matter the size.

This is huge news for investors obviously, but even better news for patients with AML.

(h/t Bespoke Investment Group)

NOW WATCH: The ‘Zulu Cobra’ helicopter is one of the Marines’ most powerful weapons

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.