Synta Pharmaceuticals Corp. (NASDAQ: SNTA) is another company with a promising cancer drug. On June 3, at the American Society of Clinical Oncology, Synta will present data from its phase II GALAXY-1 ganestespib lung cancer study. This particular study compares the combination of ganestespib and docetaxel against docetaxel alone in second-line non-small cell lung cancer. The Jefferies price target for the stock is $22, while the consensus estimate is at $18. Both targets represent price movement in excess of 100%.
I can't imagine it going much lower. Even if GALAXY-1 fails, SNTA still has a rich pipeline: ganetespib in combination with others in several types of cancer, elescomol for ovarian cancer and AML etc. Since early May, the stock has fell 30% - to me it seems that the market already assumes that GALAXY-1 fails and discounts for that.