Wedbush Boosts Target on Outperform-Rated Oncothyreon (ONTY) to $31 Ahead of STIMUVAX Phase III Data

November 16, 2011 1:23 PM EST
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Price: $1.21 --0%

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    8 Buy, 2 Hold, 1 Sell

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Oncothyreon Inc. (Nasdaq: ONTY) is up about 7 percent Wednesday, following a price target raise at Wedbush.

The firm moved its target from $15 to $31, maintaining an Outperform rating, following a look at STIMUVAX.

Wedbush thinks that the next interim look for STIMUVAX -- expected in Q112 -- will have the Phase III trial achieving a pre-specified threshold for early stopping.

Wedbush comments, "We view the risk reward opportunity for ONTY as highly asymmetric ($2-4/share downside [futility/continue], $25/share upside). Based upon our assumption that the P value to trigger an early stop at this second interim is <= 0.001, and that at this point in the Study, the Hazard value is roughly 0.65, our calculations suggest that with the 529 events there is better than a 90% probability that the Study will hit the early stopping success threshold."

Oncothyreon recently provided an update on Phase I results from studies of PX-866 in combination with either docetaxel or cetuximab; Phase II results expected at ASCO 2012. Data showed PX-866 in combo with cetuximab showed a disease control rate of 88% and an ORR of 50% vs. historical single agent ORR of 12.5% and resulted in no addition toxicity. Further, PX-866 in combo with docetaxel showed a disease control rate of 75% in 43 pts with advanced cancer where docetaxel is the standard of care.

Finally, Wedbush said, "PX-866 continues to be well tolerated in combination at the single-agent dose with both docetaxel and cetuximab; no DLTs were observed."

For an analyst ratings summary and ratings history on Oncothyreon click here. For more ratings news on Oncothyreon click here.

Shares of Oncothyreon closed at $6.41 yesterday.

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