Biotech Values

[vinmantoo]

{{PGNX phase-2 data in CRPC is out—market reaction tepid:

http://finance.yahoo.com/news/progenics-pharmaceuticals-presents-positive-phase-163000893.html

Comments?}}

Dew, sorry for the delay in my response. Let's forget about the market reaction and look at what it means for PGNX. When the phase I data was released, there was one or tow deaths in the heavily pretreated group and one analyst stated that the anti-PMSA conjugate was dead due to high toxicity. PNGX stock lost about 40% of its share price the day after that analyst's comments. The antibody conjugate uses the linker developed by SGEN

In my view the phase 2 data was a small positive for PGNX because it established the working dose of 2.3 mg/kg and the toxicity concerns have been eliminated. The patient population tested is a relatively new type, patients who failed to respond to either XTANDI or ZYTIGA so we don't have a good comparative historical basis and this was not a controlled trial. This patient population had two components, those also treated with taxanes and a smaller chemo-naive. Both showed some efficacy with regards to recist criteria, but was better for the chemo-naive group, which isn't surprising since the drug conjugated to a microtubule inhibitor. Given that XTANDI and ZYTIGA are now given to chemo-naive patients of mCRPC, such patients who fail or progress on that regimen represents a growing population for PGNX and their anti-PMSA antibody drug conjugate and a good opportunity.

PGNX has been conservative fiscally and they have kept this up by stating they need a partner to move the anti-PMSA ADC into phase 3. I realize that partnership talks are common and cheap, but it would shock me to see PGNX move forward without such. Summing up, it is only a small positive until a partnership is announced.