Oncothyreon (ONTY) Data Known, Shares May React to Puma (PBYI) Release, Says Cantor

(Updated - May 14, 2015 9:06 AM EDT)

Oncothyreon (NASDAQ: ONTY) should not be reactive to ASCO abstracts, said Cantor Fitzgerald's Mara Goldstein. Shares advanced 15% post-market as abstracts were released. The move might relate to data from Puma Biotech (NYSE: PBYI).

Goldstein explained, "As with Celldex, Oncothyreon's ONT-380 data has already been presented, and will be updated at ASCO, thus we believe the shares should not be reactive to abstract publications, and maintain our HOLD rating."

"Offsetting this is could be data from a drug with a similar mechanism (neratinib/Puma Biotechnology), though the trial published is unlikely to be in a setting that Oncothyreon would pursue. We think that ONT-380 is undervalued but with such dependence on this candidate, we think the shares are likely to continue to struggle until a clear development path - like a partner or additional capital - is known," added the analyst.

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