Post by tomsylver on Apr 11, 2017 5:58:45 GMT
April 10, 2017
By Teresa Rivas
Tesaro (TSRO) has been on a wild ride of late, gaining more than 200% in the past year on takeout speculation, but also taking big hits on data about its cancer treatment.
On Monday, Janney Montgomery Scott’s Debjit Chattopadhyay initiated coverage on Tesoro with a Neutral rating and a $141 fair value estimate.
Chattopadhyay writes that while the company is well positioned thanks to its ovarian cancer drug and other late-stage treatments, but optimism is already fully reflected in the stock’s valuation.
From the note:
In the competitive platinum-sensitive ROC, TSRO is relatively well-positioned after Zejula’s broad label unencumbered by a companion diagnostic, although transient myelo-suppression is a concern for some physicians. KOL feedback indicates: Choice over the intermediate term to be dictated by safety, familiarity, formulary/contracting; expect a 60%+ g&sBRCA patients and up to 40% of BRCAwt to switch to PARPi over the next six months; and expect AstraZeneca (AZN) to be approved both in gBRCA and sBRCA patients both in frontline and second-line. Beyond ROC, Zejula combination studies with anti-VEGF and anti PD-1 antibodies could be a game changer over the longterm; however, our frontline maintenance model incorporates a 24-month treatment duration and benefit above that may be incremental. Additionally, the BRAVO setback adds uncertainty, forcing a move into the crowded TNBC segment and the likely foray into NSCLC with an I/O combo is currently aspirational.
Tesaro is up 0.4% to $143.95 this afternoon.
In February Leerink cut Tesaro to Hold, arguing that the M&A-fueled rally had made its stock too richly valued.
blogs.barrons.com/stockstowatchtoday/2017/04/10/tesaro-good-news-is-already-baked-into-the-stock/?mod=yahoobarrons&ru=yahoo&yptr=yahoo
By Teresa Rivas
Tesaro (TSRO) has been on a wild ride of late, gaining more than 200% in the past year on takeout speculation, but also taking big hits on data about its cancer treatment.
On Monday, Janney Montgomery Scott’s Debjit Chattopadhyay initiated coverage on Tesoro with a Neutral rating and a $141 fair value estimate.
Chattopadhyay writes that while the company is well positioned thanks to its ovarian cancer drug and other late-stage treatments, but optimism is already fully reflected in the stock’s valuation.
From the note:
In the competitive platinum-sensitive ROC, TSRO is relatively well-positioned after Zejula’s broad label unencumbered by a companion diagnostic, although transient myelo-suppression is a concern for some physicians. KOL feedback indicates: Choice over the intermediate term to be dictated by safety, familiarity, formulary/contracting; expect a 60%+ g&sBRCA patients and up to 40% of BRCAwt to switch to PARPi over the next six months; and expect AstraZeneca (AZN) to be approved both in gBRCA and sBRCA patients both in frontline and second-line. Beyond ROC, Zejula combination studies with anti-VEGF and anti PD-1 antibodies could be a game changer over the longterm; however, our frontline maintenance model incorporates a 24-month treatment duration and benefit above that may be incremental. Additionally, the BRAVO setback adds uncertainty, forcing a move into the crowded TNBC segment and the likely foray into NSCLC with an I/O combo is currently aspirational.
Tesaro is up 0.4% to $143.95 this afternoon.
In February Leerink cut Tesaro to Hold, arguing that the M&A-fueled rally had made its stock too richly valued.
blogs.barrons.com/stockstowatchtoday/2017/04/10/tesaro-good-news-is-already-baked-into-the-stock/?mod=yahoobarrons&ru=yahoo&yptr=yahoo
