Clovis Oncology (CLVS) and Tesaro (TSRO) were soaring Friday after AstraZeneca (AZN) announced that its Lynparza drug, used for breast cancer treatment, saw positive data in phase three clinical trials.
Analysts noted that the boost was likely thanks to the fact that both Clovis and Tesaro have assets that target tumors using PARP inhibitors, just as AstraZeneca's Lynparza does.
Clovis shares were up 6.35% midday Friday, hitting $65.27 apiece. Clovis shares have doubled since February 2016.
Meanwhile, Tesaro was up 3.7%, hitting $189.31 per share. The company's value has tripled since last year.
Astrazeneca, though, wasn't moved as much by the news. The company's shares were up 1.25% midday, hitting $29.13 apiece.
Both Clovis and Tesaro are broadly seen as potential targets for takeover. Reports surfaced earlier in February that Tesaro is speaking with investment banks, including Citigroup, about a potential deal. The reports noted that Tesaro is not yet seeking a sale, however, it's important to note that engaging with bankers is often the first step in an M&A process.
Sanofi (SNY) has been floated as a buyer for Tesaro. The company has denied these claims.
As for Clovis, the company went public in January, after months of rumors that it could be acquired. Still, Eli Lilly (LLY) and Merck (MRK) have been seen as buyers for Clovis, in part because neither one was unable to close a deal with Medivation (MDVN) , which was acquired by Pfizer (PFE) for $14 billion just last year.