OncoSec Medical Inc (ONCSQ)

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On September 28, 2016, Incyte and Merck announced updated results of their phase 1 ECHO 202 trial evaluating Incyte's epacadostat (an IDO1 inhibitor) in combination with Merck's pembrolizumab for metastatic melanoma. This all-comers trial evaluated safety and efficacy in 21 patients. The overall response rate was 58%, on par with combination T-vec plus pembrolizumab and Yervoy plus Opdivo. Again, this was not a non-responder (to monotherapy pembrolizumab) population, but was inclusive of patients who could theoretically respond to pembrolizumab alone.

How did the market react to the news? Incyte's market cap increased $776 million, and at one point had exceeded $1 billion during the day on more than twice their daily volume.

This begs the question: what happens to a company's market cap when they demonstrate responses in a NON-RESPONDER population for the same indication with similar enrollment numbers?