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Cancer drug company Tesaro shares rise 39% following report that it will explore sale

Key Points
  • Tesaro shares soared 39 percent Friday upon a Bloomberg report that the pharmaceutical company will explore the opportunity of a sale.
  • This comes exactly one week after Tesaro fell more than 20 percent during after-hours trading after the release of drug trial results.
  • A spokesperson declined to comment.
Tesaro exhibit booth 
Source: Tesaro | Twitter 

Tesaro shares soared as much as 39 percent Friday upon a Bloomberg report that the pharmaceutical company will explore the opportunity of a sale.

This comes exactly one week after the cancer drug company fell more than 20 percent during after-hours trading after the release of drug trial results for treatment of small cell lung cancer. A spokesperson declined to comment.

The company is working with financial advisers to examine the deal, and the company could still remain independent, the Bloomberg story said. The financial advisers also have contact other potential buyers.

Tesaro also explored a sale in May 2017, but it did not come to a close. Shares then fell more than 11 percent during that time.

The company was founded in 2010 and went public in 2012. Its first drug, Varubi, was approved by the US Food and Drug Administration in October 2015. It's used to treat chemotherapy side effects, such as nausea and vomiting. It's other cancer drug Zejula has been struggling.

Shares are down 68 percent this year.

This story is developing. Please check back for updates.

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Tesaro sale process seen unlikely to result in deal

Key Points
  • Sources told CNBC Tesaro is unlikely to find a buyer, contrary to prior reports.
  • Shares of the drugmaker briefly fell more than 11 percent.