NeoPharm Inc. (NEOL.O: Quote, Profile, Research) on Tuesday said an independent panel found a late-stage clinical trial of its experimental drug for an aggressive form of brain cancer should continue as planned, sending shares up more than 45 percent.

The recommendation to continue the trial of the drug, IL13-PE38QQR, and not change the study's design bodes well for the drug's eventual approval, said Vinny Jindal, an analyst with Wedbush Morgan Securities.

"The fact that they didn't have to resize the trial indicates the trial is on its way to reaching statistical significance," Jindal said.

"If IL13 is approaching statistical significance, it demonstrates the drug is highly potent," he added.

NeoPharm is studying its drug as a potential treatment for glioblastoma multiforme, an aggressive form of brain cancer that is considered incurable.

NeoPharm said it remains "cautiously optimistic" for a positive final outcome of the trial, called Precise. The company said it expects to conduct an interim efficacy analysis late in the second quarter.more| Reuters.com