Stifel analyst, Thomas Shrader, thinks that preclinical excitement for Medivation's (NASDAQ: MDVN) talazoparib is bearing fruit. Much of Medivation’s excitement in Talazoparib is based on the drug’s ability to “trap” the PARP enzyme on the DNA and act like a Topo II inhibitor in addition to inhibiting PARP enzymatic activity. Topo II inhibitors from the anthracycline family are the most broadly active drugs in the chemotherapy world but their use is often restricted due to cardiotoxicity. No change to Buy rating or $52 PT.

Phase I talazoparib data were released in AACR 2016 that seem to support the preclinical data suggesting that the drug’s high level of PARP-trapping will make it highly synergistic with chemotherapies that generate single strand breaks in DNA – and by inference with radiation. Four of seven wild-type BRCA ovarian cancer patients experienced responses although most had some level of BRCA-like characteristics. It’s hard to draw too much out of such a small data set from a single center – but these data will only make the company less interested in being acquired without very significant upside to the current value of the Xtandi franchise and at least conditional upside to the current value of the Talazoparib franchise.

The presentation showed Talazoparib is active in combination with levels of both for temozolomide and irinotecan (37.5 mg/m2) that are below the normal doses used for each drug. This same synergy has been suggested by Medivation’s preclinical work – a significant positive for the story if it holds up in later trials.

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Shares of Medivation closed at $51.17 yesterday.