Stifel Downgrades OncoGenex Pharmaceuticals (OGXI) to Hold

(Updated)

Stifel downgraded OncoGenex Pharmaceuticals (NASDAQ: OGXI) from Buy to Hold and removed its price target (prior $7.00). The change follows news AFFINITY failed to achieve a statistical threshold for overall survival in subpopulation of metastatic castrate-resistant prostate cancer (CRPC) patients with poor-prognostic risk factors.

Analyst Stephen D. Willey said, "We believe the OS analysis in the prospectively-defined subgroup of poor-prognostic/chemotherapy-experienced CRPC patients enrolled in the P3 AFFINITY trial (cabazitaxel ± custirsen) represented the best opportunity for custirsen to secure a P3 clinical win. And while acknowledging the rigorous statistical threshold doesn’t rule out the potential for a subsequent win on an intent-to-treat (ITT) basis, we believe prior P3 SYNERGY data (docetaxel ± custirsen, chemotherapy-naïve CRPC) suggests visibility here is minimal. We believe visibility into 1Q16 PFS data from the P2 SPRUCE trial (carboplatin/pemetrexed ± apatorsen, first-line NSCLC) is similarly-limited and apatorsen’s safety/tolerability profile still remains a source of longer-term concern for us. Despite after-hours trading implying OGXI shares are now at/below cash (fully-diluted basis), we believe it’s prudent to move to the sidelines here."

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

Shares of OncoGenex Pharmaceuticals closed at $2.62 yesterday.

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