UPDATED: Synta nosedives on lung cancer data for ganetespib

Shares of Synta ($SNTA) sank after news spread that its drug ganetespib spurred a 32% increase in survival for advanced lung cancer patients. The stock plunged down more than 33% to $4.92 per share as of 2:14 p.m. ET. Yet investigators saw a potential win for Synta's most advanced drug candidate.  "The results presented today are exciting in indicating the potential for creating a new treatment option for patients with progressive disease and limited treatment options," said Dr. Philip Bonomi, Rush University Medical Center. "In addition, the results today provide convincing evidence for using rate of disease progression as a criterion for treatment selection. Similar criteria are increasingly common in other cancer types including breast, ovarian, and hematologic malignancies." Release

Editor's note: The headline was changed to reflect an updated stock quote for Synta shares as of early this afternoon.