Wedbush Maintains an 'Outperform' on OncoGenex Pharmaceuticals (OGXI); Raises Fair Valur
OGXI Hot Sheet
Rating Summary:2 Buy, 0 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Wedbush maintains an Outperform rating on OncoGenex Pharmaceuticals (Nasdaq: OGXI), raises price target from $40 to $56.
Wedbush analyst says, "OGXI and Teva Pharmaceuticals (Nasdaq: TEVA) agreed to a worldwide development and commercialization agreement for OGX-011 in the prostate cancer and non-small cell lung cancer settings. OGXI will receive a $60 million upfront payment and is eligible to receive up to $370 million in clinical, regulatory and commercialization milestones, as well as royalties on all sales in the mid-teens to mid-twenties (we expect loyalties to net out at approximately 20%). The $60 million upfront payment includes $10 million equity investment (at $37.38/share), a $20 million cash payment and $30 million in pre-reimbursement for OGX-011 development costs...We believe the stock’s weakness to be due to the choice of Teva and the absence of significant catalysts for 2-plus years. While the Teva deal terms are attractive, the street may have hoped a mainstream proprietary oncology drug discovery/development partner would have validated the existing dataset. We are not surprised in the turn over in the stock following partnership announcement as event focused traders move on to other ideas and longer term oriented investors initiate or add to positions in OGXI."
To see all the upgrades/downgrades on shares of OGXI, visit our Analyst Ratings page.
Wedbush analyst says, "OGXI and Teva Pharmaceuticals (Nasdaq: TEVA) agreed to a worldwide development and commercialization agreement for OGX-011 in the prostate cancer and non-small cell lung cancer settings. OGXI will receive a $60 million upfront payment and is eligible to receive up to $370 million in clinical, regulatory and commercialization milestones, as well as royalties on all sales in the mid-teens to mid-twenties (we expect loyalties to net out at approximately 20%). The $60 million upfront payment includes $10 million equity investment (at $37.38/share), a $20 million cash payment and $30 million in pre-reimbursement for OGX-011 development costs...We believe the stock’s weakness to be due to the choice of Teva and the absence of significant catalysts for 2-plus years. While the Teva deal terms are attractive, the street may have hoped a mainstream proprietary oncology drug discovery/development partner would have validated the existing dataset. We are not surprised in the turn over in the stock following partnership announcement as event focused traders move on to other ideas and longer term oriented investors initiate or add to positions in OGXI."
To see all the upgrades/downgrades on shares of OGXI, visit our Analyst Ratings page.
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