January 4, 2012 9:05 AM EST Canaccord Genuity maintains a 'Buy' on AVEO Pharmaceuticals (NASDAQ: AVEO) price target of $28.00.
Canaccord analyst, George Farmer, said, "TIVO-1 met its primary endpoint of demonstrating a statistically significant progression-free survival (PFS) benefit with lead drug candidate, tivozanib (t-nib), over Nexavar (11.9 vs. 9.1 months; no stats revealed) as front-line treatment of metastatic renal cell carcinoma (RCC). Safety/tolerability was consistent with Phase II results, as reported. While the Nexavar PFS outcome was higher than our/Street expectations (leading to a smaller-than-expected overall treatment benefit), we see explicit FDA focus on absolute efficacy supporting eventual NDA approval, per comments from an ODAC meeting last month. We expect market launch in Q4/13."
"We maintain our BUY on our view of oversold AVEO shares following top-line Phase III TIVO-1 data release."
i sold my aveo position last Monday and put the money into Inhibitex (INHX) which, incredibly enough, is going to be acquired by Bristol Myers (news broke yesterday). That's never happened to me before - lucky i suppose, but i certainly didn't anticipate it.
i could see Aveo drifting downward until recently revealed data is further clarified. Tivozanib clearly is a going to be approved and will be a very good drug - but it's just not clear at this point whether it's materially better than either sutent or axitinib. i was hoping for a clearer signal that it would be the best in class drug in the RCC space.