What made Processa Pharmaceuticals stock nearly triple on Thursday?

Processa Pharmaceuticals Inc (NASDAQ: PCSA) says it has completed a safety evaluation of its cancer treatment. Its shares rallied well over 150% on Thursday.

Processa Pharmaceuticals finishes a Phase 1b trial

The pharmaceuticals company had set out to test the safety tolerability of NGC-Cap – Next Generation Capecitabine in a Phase 1b trial.

Now that it’s done with that study, Processa has selected two dosage regimens for a Phase 2 trial aimed at evaluating the combination of its PCS6422 enzyme inhibitor and Capecitabine (common chemotherapy) in the treatment of metastatic breast cancer.

In November, the Hanover-headquartered firm said it lost $2.08 million in its third quarter versus $6.02 million in the same quarter last year.

Processa Pharmaceuticals stock is still down close to 70% versus its high last month.

Processa Pharmaceuticals stock recently had a reverse split

The news arrives only days after the U.S. Food and Drug Administration (FDA) said Processa should focus the Phase 2 study of next-gen capecitabine on breast cancer. David Young – its president of R&D said in a press release today:

Last week, the pharmaceutical firm moved ahead with a 1-for-20 reverse stock split to regain compliance and remain listed on Nasdaq. $PCSA also proposed equity offering earlier this month.

Wall Street currently has a consensus “hold” rating on Processa Pharmaceuticals stock that does not pay a dividend at writing.