Biotech Values

[microcapfun]

YMI/Feuerstein today

"I decided to place YM Biosciences at the top because CYT387's mechanism of action is well understood and the drug could be a viable treatment for myelofibrosis even if the controversial anemia benefit turns out to be a zero. (Just not as commercially successfully.)"
http://www.thestreet.com/_yahoo/story/11171001/1/biotech-stock-mailbag-ranking-cheap-biotechs.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA


Is he correct? Incyte has orphan drug status for its JAK1/JAK2 inhibitor which is almost sure to be approved within a few months. How could YMI sell their drug within 7 years if it inhibited the same targets and had the same effects (reduced spleen size, reduced night sweats, weight gain, etc.) for the same indication (MF)?

My understanding is that the only way to get around orphan drug status for the same indication is if the 2nd drug is superior or if it hits different targets. They both hit JAK1 and JAK2. If YMI's JAK inhibitor somehow improves anemia, unlike Incyte's, I can see how it would get to market within 7 years - but not if it doesn't.

Who is wrong - AF or me?

micro