Prima Biomed Ltd (PBMD), a biotechnology company that specializes in developing oncology therapies, saw its stock increase exponentially Wednesday after data from its Phase II CAN-003 ovarian cancer clinical trial was released. Here’s a look at what its share increase means for the company:

• At the end of the day Wednesday, Prima Biomed had risen over 268% since market opening, bumping the stock to trade at $5.90.

• The data from the trial was positive, which means that there was meaningful improvement in overall survival of second remission patients. The positive results also mean that the drug is working as expected.

• Market reaction to the trial results are similar to positive data from other emerging biotech companies. Generally speaking, positive trials can make small cap stocks intriguing takeover targets for large cap firms in the same space.

• However, Prima Biomed lives in a very volatile industry, and it is still a pretty small company which can add to price volatility. Plus, let’s not forget that this is just the first step in what can be a very long process so more bumps could be in the road ahead.

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