Array BioPharma (ARRY) PT Raised to $9 at Leerink Partners Following 'Impressive' Phase III Trial
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Leerink Partners analyst Michael Schmidt reiterated an Outperform rating and raised his price target on Array BioPharma (NASDAQ: ARRY) to $9.00 (from $6.00) after the company announced positive top-line results of the Phase III "COLUMBUS" trial evaluating the combination of binimetinib with encorafenib compared to Roche's vemurafenib in patients with BRAF+ metastatic melanoma.
Schmidt commented, "The data look impressive to us, indicating a potential best-in-class profile for ARRY's combination with potentially better tolerability and significantly longer median progression free survival (PFS) as compared to approved combinations by NVS (MP) and Roche. This confirms our upside thesis recently highlighted in a deep-dive (LINK). While the study just missed a secondary endpoint (comparison vs, encorafenib monotherapy), we think the approval probability is high, given the well established mechanism of MEK and BRAF inhibitor combinations. We believe the results also read-through positively to the ongoing Phase III "BEACON" trial in colorectal cancer. Our new PT of $9 from $6 reflects a higher approval probability, as well as a higher peak market share for encorafenib/binimetinib in BRAF+ melanoma with a launch expected in 2018. ARRY still trades at a significant discount to other near-commercial oncology companies and we are reiterating our OP rating."
Shares of Array BioPharma closed at $3.65 yesterday.
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