Phio Pharmaceuticals Corp. (PHIO) delivered some genuinely encouraging clinical trial results Tuesday, and investors noticed. The small biotech saw its shares rocket more than 51% after announcing positive Phase 1b data for PH-762, its lead drug candidate targeting skin cancer.

The trading action was dramatic—the $9 million market cap company saw session volume hit 5.82 million shares, about 14 times its typical daily volume of 412,490 shares.

What the Trial Showed

Here's what got people excited: The Safety Monitoring Committee completed its review and found no serious adverse events or dose-limiting toxicities across all five dose escalation cohorts. That's important because it means the drug appears safe even as doses increased.

But the real headline is the efficacy data. At the highest dose concentration, PH-762 achieved an 85% pathological response rate. Even more impressive, four out of six responders saw complete tumor clearance—meaning the tumors disappeared entirely.

The trial enrolled 22 patients with cutaneous carcinomas, a type of skin cancer. Each patient received four intratumoral injections of PH-762 directly into the tumor, then had the treated area surgically removed and examined. Patients were monitored for at least four weeks after the final injection. The dose escalation design increased drug concentration 20-fold from the lowest to highest cohort, which helps researchers identify the optimal therapeutic dose.

What Happens Next

The company isn't rushing into anything. While final study data still needs formal analysis, Phio is targeting the second quarter of 2026 for an FDA submission. That filing will propose next steps in clinical study design for PH-762 and seek regulatory guidance on how to move forward.

Meanwhile, the behind-the-scenes work continues. The company is making progress on process development, methods documentation, and impurities testing—all necessary groundwork to begin manufacturing clinical-grade material in the second half of 2026.

There's also a non-human primate study on the calendar, with material expected to be ready by March 2026. That primate study is a required step before launching human pivotal trials. If everything goes according to plan, PH-762 could eventually offer a non-surgical treatment option for skin cancer patients.

The Technical Picture

Despite Tuesday's surge, Phio has had a rough year. The stock is trading 12.5% below its 20-day simple moving average and 17.3% below its 50-day moving average, reflecting short-term bearish sentiment. Over the past 12 months, shares have dropped approximately 49.44%, and the stock sits much closer to its 52-week lows than its highs.

The RSI sits at 34.74, which is neutral territory, while the MACD remains below its signal line, indicating bearish pressure. It's a mixed technical picture—neither screaming buy nor sell, just reflecting the reality that small biotech stocks are volatile and sentiment-driven.

• Key Resistance: $1.00
• Key Support: 81 cents

PHIO Price Action: Phio Pharmaceuticals shares were up 51.11% at $1.36 at the time of publication on Tuesday.