Techniclone Surges on News of Cancer Drugs

Caught up in investors’ frenzy over a promising treatment for cancer, Techniclone Corp. shares surged after the Tustin biotechnology firm released research data about its new cancer-fighting drugs.

Volume topped 19.3 million shares, making Techniclone the most active stock on all U.S. markets.

Staff at the troubled firm, which has had layoffs and financial difficulties during the last year, was surprised when its stock rocketed from 84 cents a share to as high as $2.66 before retreating a bit to close at $1.34, up 50 cents for the day.

“We were shocked,” said Dr. Jamie Oliver, vice president for clinical and regulatory affairs at Techniclone. “I have no doubt that our stock activity is happening because of the interest in EntreMed [Inc.].”

The buzz about businesses working in cancer research began Monday, when EntreMed’s stock price more than quadrupled on news that it is developing two compounds that could eliminate tumors in laboratory mice.

According to published reports, EntreMed has found that the two substances, angiostatin and endostatin, can interfere with the blood supply to tumors when they are used together. If a tumor’s blood supply is cut off, the tumor shrinks and disappears--and can be prevented from returning--according to published findings by Dr. Judah Folkman, a cancer researcher at Children’s Hospital in Boston.

On Tuesday, Techniclone released early research findings indicating that its anti-cancer drugs also attack a tumor’s blood supply. The Tustin firm is testing four drug compounds in animal trials, but they would not be available to the public for at least five years.

Several other small biotech firms enjoyed gains Tuesday. Ribozyme Pharmaceuticals Inc., which rose $1.25 a share to $7.06, also issued a statement about research findings on its anti-cancer compound. And Agouron Pharmaceuticals Inc., a La Jolla firm working on a similar drug, jumped $2.50 a share to $36.88.