Newly public biotech BlossomHill rallies on updated trial data for lung cancer drug

BlossomHill Therapeutics, which completed an Nasdaq IPO just over a month ago, surged more than 18% on Wednesday to its highest level as a public company. It reported new clinical data showing that its experimental drug was effective in patients with lung cancer that had developed mutations causing it to stop responding to treatment.

BlossomHill gained more than 18% on the Nasdaq on Wednesday to $26.25 per share. The rally was sparked by the release of new clinical data on the efficacy and safety of the company’s experimental drug BH-30643. BlossomHill tested it in patients with non-small cell lung cancer whose tumors had developed resistance mutations following treatment and stopped responding to therapy. There are no approved targeted therapies (which act directly on a specific target rather than affecting the entire body, as chemotherapy does), the company noted.

The drug is still in early-stage trials. However, the data and the FDA’s Fast Track designation for BH-30643 will allow BlossomHill to advance the drug into phase II clinical trials in 2027, according to the press release.

BlossomHill specializes in cancer treatments. In addition to BH-30643, its pipeline includes two other molecules. One is also in early-stage clinical trials and is intended to treat acute myeloid leukemia, a cancer of the blood and bone marrow. The other targets solid tumors, which form masses, and has not yet started human trials.

The biotech generates no revenue from its operations, and its loss roughly doubled in 2025 to $60.6 million, according to the IPO prospectus. BlossomHill went public on the Nasdaq in early August, offering investors 9.37 million shares – more than initially planned – at $16 apiece. The stock has since surged 64%.

Based on MarketWatch data, the stock is a unanimous "buy" among the five houses that cover it. The average target price is $32.20 per share, implying almost 23% upside from the last close.