This biopharmaceutical company has two drug candidates in clinical development across multiple oncology therapeutic areas and a candidate in pre-clinical development.
OncoGenex’Pharmaceuticals (OGXI)
from The Medical Technology Stock Letter
OncoGenex Pharmaceuticals’ (OGXI ) custirsen could dominate second-line hormone resistant prostate cancer (HRPC) therapy. Medivation’s Xtandi has delivered positive Phase III data (PREVAIL) in front-line HRPC patients who have not received chemotherapy, which is significantly better than what JNJ’s Zytiga has delivered.
The superior data for Xtandi should allow it to take front-line market share from Zytiga. A major opportunity, in our view, exists for OGXI’s custirsen in prostate cancer patients who do not respond well to Xtandi after Zytiga or vice-versa due to resistance—as both are androgen receptor based-drugs. Thus, the next line of treatment for HRPC patients who become resistant to Xtandi/Zytiga treatment will be chemo with the potential addition of custirsen. Should the Phase III SYNERGY data prove positive, which we believe it will, custirsen should emerge as the best new option for second-line HRPC patients. As we have said before, there is no cure for HRPC and 20,000 patients in the U.S. progress to metastatic disease each year resulting in a very large market opportunity for custirsen.
Another reason we like custirsen’s chances of success to treat later-stage cancer patients is the fact that one of the biggest problems facing these patients is excruciating pain as tumor metastases invade the bone. In a Phase II trial of custirsen in second-line HRPC patients, 88% experienced sustained pain relief, and more than 50% were able to discontinue use of opioids.
The ability to both extend and have a major improvement in quality of life should make custirsen the drug of choice to use with chemotherapy in second-line HRPC patients. The SYNERGY trial is expected to be complete by mid-year. OGXI is a BUY under 20 with a PRICE TARGET of 30.
John McCamant, The Medical Technology Stock Letter, www.bioinvest.com, 510-843-1857, February 6, 2014