PropThink: Rating Lends Momentum to Oncothyreon Volume; Shares Strong Today
(Thomson Reuters ONE) -
Oncothyreon (NASDAQ:ONTY) is up 11% this morning after a major gap from
yesterday's close took shares to $4.94. The jump comes on the heels of a Buy
rating by Stifel Nicolaus, announced early this morning. The banking firm set a
target price of $10. The company's lead product Stimuvax is in two Phase 3
trials for the treatment of Non Small-Cell Lung Cancer. After an independent
data-monitoring committee recommended in March that Stimuvax testing be extended
into next year, share price plummeted from $9.00. That high, however, may
represent an attainable near-term price for ONTY as the strength moving into
March was based on expected Stimuvax data in 2012. Although the subsequent sell-
off weakened the stock by more than 35%, it may represent a buying opportunity
for longer-term investors if further Stimuvax data looks good. Shares may even
have enough momentum - volume is more than double its 30-day average - moving
into next week to break $5.00 resistance.
Stimuvax is a therapeutic vaccine used post-chemotherapy to extend the life of
lung cancer patients. The treatment had some rocky results early on, with a
temporary suspension due to safety, but revealing bottom-line data of its Phase
III trial won't be seen until at least next year. The trials are sponsored by
ONTY's development partner, Merck (NYSE:MRK); Oncothyreon stands to receive
milestone payments and royalties in the high single-digits to teens. Some
analysts are skeptical of Stimuvax as a cancer vaccine, even if it is approved;
they cite the failures of highly-anticipated Provenge, a similar immunotherapy
from Dendreon (NASDAQ:DNDN), in the marketplace. Regardless, shares should gain
strength as dates are revealed for upcoming trial results.
Click here to see this article at PropThink.com.
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Datum: 24.08.2012 - 18:02 Uhr
Sprache: Deutsch
News-ID 177500
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