OGXI theflyonthewall.com: OncoGenex valuation attractive, says Thomas Weisel
After meeting with OncoGenex's management, Thomas Weisel believes that the company is the best clinical data play in the prostate cancer sector and the best value play in the oncology space. The firm maintains an Overweight rating on the stock. :theflyonthewall.com
I have read the weisel report. it says recent OGXI meetings highlighted:
1. 011 clinical and preclinical data that culminated in TEVA deal;
2. the decision making process leading to selection of TEVA as development partner and which led to OGXI retaining a significant amount of the economics;
3. the promise of 427 in multiple tumor types also characterized by treatment resistance;
4. the R and D and clinical leverage provided by Gleave's role as director of Vancouver Prostate Centre and Director of Research at UBC Urologic Sciences;
5. 7 month OS benefit data in randomized and controlled trial in hormone refractory prostate cancer makes OGXI "the best clinical data play in the prostate cancer space".
6. the company's proforma enterprise value of 40 mn "now cements OGXI as the best value play in the entire oncology space"
Lots more in the report which I will digest and share. I can try to forward report to those who are interested and who share email address.
Weisel and TEVA:
Weisel points out TEVA outperformed all others in competition for MS patients and made Copaxone the #1 selling MS drug in the world. "we continue to believe the prospects of bundling a high margin antisense drug with a generic chemo will make for some extremely interesting competitive dynamics in the oncology space".
patient enrolment in HRPC (300 patients) likely to start soon. Patient enrolment in front line HRPC (800 patients)start once adequate drug supplies available. Likely data comes out in 2-2.5 years but likely accelerated due to "impressive phase II data"
initiation of 011 in lung likley in early 2011 is a function of if/how drugs like Avastin or Alimta will be included in trial design. An advanced IIb randomized trial in squamous cell setting is possibility given promising signal in open label Phase II trial
phase 1 427 data may be ready for ASCO 2010 meeting. promising data in bladder and HRPC may lead to further phase I and II trials. management excited about 427 in ovarian and multiple myeloma
no problems due to TEVA and grants
I bought based on technicals as well. This is where I'm parking some of my trading profits. I'm up about 5% since 1/29. I'm pretty sure that they will move with the market over the coming weeks, and will move fast.