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Investor Alert

May 24, 2022, 7:39 a.m. EDT

SpringWorks shares jump 14%; company plans to seek FDA approval for desmoid tumor therapy this year

Shares of SpringWorks Therapeutics Inc. (NAS:SWTX) were up 14.9% in premarket trading on Tuesday after the company said a late-stage clinical trial evaluating its treatment for patients with progressing desmoid tumors met its primary endpoint. A desmoid tumor is a rare disease. The double-blind, placebo-controlled Phase 3 trial testing nirogacestat improved progression-free survival compared with placebo. It also met all secondary endpoints. SpringWorks said it plans to submit an application for nirogacestat to the Food and Drug Administration in the second half of this year. SpringWorks' stock momentum carried over to Ayla Therapeutics Inc. (NAS:AYLA) , which is also developing a treatment for desmoid tumors. Ayla's stock was up 18.8% before the market opened on Tuesday. SpringWorks' stock has declined 38.7% this year, while the S&P 500 (S&P:SPX) is down 18.1%.

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