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Poniard Shares Rise On Hopes Of Positive Data At Conference
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12:25 PM ET 1/22/10 | Dow Jones
By Shara Tibken

Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Shares of Poniard Pharmaceuticals Inc. (PARD) jumped Friday as investors hoped for positive results from data for the company's cancer drug to be presented at a conference this weekend.

Poniard has been conducting trials for picoplatin--a platinum-based chemotherapy in a class of cancer-fighting drugs that first emerged decades ago--for use in several indications, including prostate and small-cell lung cancer. It plans to present data for the drug for the treatment of colorectal cancer at the American Society of Clinical Oncology 2010 Gastrointestinal Cancer Symposium this weekend in Orlando.

A spokeswoman for the company said the results--including survival data--will be presented Sunday.

Analysts said investors are expecting positive results from the company's Phase 2 trial for colorectal cancer.

"We like the drug, and we think the data are going to be good," Needham & Co. analyst Mark Monane said. "These data will be incremental, but I believe this is an active drug."

In recent trading, shares jumped 17% to $2.50 on quadruple the normal daily volume. Despite Friday's gains, shares have dropped 65% over the past three months.

In November, Poniard suffered a significant setback after announcing picoplatin for the treatment of small-cell lung cancer didn't meet the primary endpoint of a late-stage study. The drug showed a benefit in overall survival, but the benefit wasn't statistically significant compared with a control group. That day, the stock plummeted 76%.

For the indication of metastatic colorectal cancer, Poniard has been conducting a Phase 2 trial with 101 cancer patients who haven't received prior chemotherapy. The trial is meant to evaluate safety and efficacy--measured by overall survival, progression-free survival and disease control--of the drug in combination with other drugs. Data already presented have shown a statistically significant reduction in neurotoxicities with the use of picoplatin.

"The data in colorectal cancer has been strong in both the efficacy and safety sides of the equation," Wedbush Morgan analyst Gregory Wade said, though he cautioned the path forward for picoplatin remains uncertain.

Even with good data, the company faces many challenges in developing the drug, most importantly securing new funds to continue studies--either through a partnership or capital infusion.

The company has been seeking a partnership to develop the drug but hasn't yet announced any agreements. A company spokeswoman said Friday the company is still pursuing a partnership.

"There will be good data, but the problem is it's a Phase 2 trial, and the company doesn't have the financial resources to develop the drug for that indication," Merriman Curhan Ford analyst Michael King said. "The data might ultimately lead to a partnership or acquisition, but I don't think Poniard's going to present the data this weekend and do a deal next week." Rating :
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