"OncoGenex (NASDAQ:
OGXI) is a development-stage biopharmaceutical company focused on new cancer therapies to address treatment resistance in cancer patients," says biotech expert
John McCamant
In his The Medical Technology Stock Letter, he explains, "The firm's market cap is just under $225, which is extremely low for a cancer compound this far along in development." Here's his in-depth analysis.
"The company completed a reverse merger with Sonus Pharmaceuticals in August 2008 that resulted in OGXI becoming a publicly-traded company.
"Its lead product, OGX-011, has the potential to address very large market opportunities, including prostate and breast cancer.
"OGX-011 has completed five Phase 2 trials in prostate, breast and non-small cell lung cancer (NSCLC), generating positive data to date, and is poised to enter two Phase 3 studies in first and second-line hormone refractory prostate cancer (HRPC).
"This lead drug candidate was in-licensed from ISIS who retains roughly 30% of OGX-011's economics.
"The company's current valuation of $215 million is providing a unique opportunity for a company with a drug development candidate that has delivered impressive randomized Phase 2 data showing a survival benefit in a major cancer market.
"We expect a partnership by year end which would allow the company to quickly start their Phase 3 trials for OGX-011 as they have already obtained special protocol agreements (SPAs) for both trials from the FDA.
"OGX-011 reduces the production of the protein clusterin which is believed to help cancer cells survive when treated with chemotherapy and is known to be present in a large number of tumor types.
"Data from the Phase 2 program have shown that adding OGX-011 to chemotherapy provides a survival advantage vs. chemotherapy alone in 1st-line HRPC treatment, provides better pain palliation in 2nd-line HRPC therapy, and appears to benefit NSCLC patients.
"We estimate the potential opportunity in the HRPC market alone could exceed $1 billion in sales if the drug were ultimately approved for both first- and second-line treatment and that additional indications may provide an even larger market opportunity.
"The most important data produced to date for OGX-011 is the randomized survival data obtained from the first-line HRPC trial. The trial showed that median overall survival was 23.8 months in patients receiving OGXI-011+ docetaxel/prednisone vs.
