Replies to post #248341 on Biotech Values

[Mufaso]

ARAV – Batiraxcept is another example of why it is important in biotech investing to be careful with unproven MOA’s for new drug candidates even after decent phase 2 results. I generally don’t invest in unproven MOA’s but looked the other way as the safety looked exceptional, the reward looked to be very high and there was heavy investment by insiders. Turns out the safety was good probably because the drug doesn’t do much and the insiders had no clue.

When an investment thesis I have is broken, I have a rule to sell immediately and that’s what I did at the open. I don’t see this biotech as having any future after what was in the press release:

its Phase 3 AXLerate-OC trial evaluating the safety and efficacy of batiraxcept in platinum-resistant ovarian cancer did not meet its primary endpoint of progression-free survival (PFS) in the pre-specified subset of patients naïve to prior bevacizumab treatment. The trial did not show any difference between the two arms in the overall population (which included patients previously treated with bevacizumab). The Company will continue to evaluate the complete dataset and determine next steps in the development of batiraxcept.