Loxo Oncology Inc. shares surged 8.3% in morning trade Monday after the company released positive results for a phase 1 trial of its cancer drug LOXO-292. The trial included patients with lung cancer, thyroid cancer and pancreatic cancer, all of whose cancers had mutations called RET alterations, which LOXO-292 targets. Patients had high overall response rates, specifically 77% for all RET fusion-positive cancers. "The durability of both [overall response rate] and stable disease within each of these subgroups remains impressive - and the almost-too-good-to-be-true safety/tolerability profile confirms on-target selectivity while further-distancing LOXO-292 on the competitive differentiation front," said Stifel analyst Stephen Willey, increasing Loxo's price target by 18% to $225 and giving the stock a buy rating. Loxo shares have surged 68.6% over the last three months, compared with a nearly 2% rise in the S&P 500 and a 1% rise in the Dow Jones Industrial Average