Post by tomsylver on Jun 19, 2017 19:35:11 GMT
Tesaro: Is The Selloff Overdone?
Why are shares of Tesaro falling today? Blame clinical trial results released by rival Clovis Oncology for a competing ovarian cancer drug.
ByJohanna Bennett June 19, 2017 12:37 p.m. ET
The initial panic that surrounded shares of Tesaro (TSRO) this morning appears to have eased back quite a bit.
Tesaro is one of three leaders in the market for so-called PARP inhibitors, a new class of cancer drug. Earlier today, rival Clovis Oncology (CLVS) released data for its drug Rubraca that fueled worries about Tesaro’s hold on the market.
Initially down more than 10%, Tesaro’s stock regained much of that lost ground. Now at $142.50, the shares were down 1.2% in recent market action.
Tesaro markets the ovarian cancer drug Zejula, which is approved as a maintenance therapy. Clovis’s Rubraca is approved for patients with a particular genetic defect or those whose disease has progressed after several rounds of chemotherapy.
Clovis wants to expand use of its drug. The data released today suggests that it and rival drugs from Tesaro and AstraZeneca (AZN) are “largely undifferentiated” in terms of efficacy.
But Cowen analyst Boris Peaker argued that safety data gives Clovis’s Rubraca a leg up over Tesaro’s Zejula. He cut his price target on Tesaro $124 from $144.
Taken together, across all BRCA/HRD subgroups rucaparib and niraparib will be viewed similarly in terms of efficacy, but we believe rucaparib is better positioned given the better safety and slightly earlier commercial head-start (treatment label launched in December 2016). As such, we have taken down niraparib peak penetration slightly in all patients subgroups and arrive at our new $125 PT.
But the armlet for PARP inhibitors could total as much as $10 billion. That proves true, the is lots of room for more than one blockbuster player.
link
Why are shares of Tesaro falling today? Blame clinical trial results released by rival Clovis Oncology for a competing ovarian cancer drug.
ByJohanna Bennett June 19, 2017 12:37 p.m. ET
The initial panic that surrounded shares of Tesaro (TSRO) this morning appears to have eased back quite a bit.
Tesaro is one of three leaders in the market for so-called PARP inhibitors, a new class of cancer drug. Earlier today, rival Clovis Oncology (CLVS) released data for its drug Rubraca that fueled worries about Tesaro’s hold on the market.
Initially down more than 10%, Tesaro’s stock regained much of that lost ground. Now at $142.50, the shares were down 1.2% in recent market action.
Tesaro markets the ovarian cancer drug Zejula, which is approved as a maintenance therapy. Clovis’s Rubraca is approved for patients with a particular genetic defect or those whose disease has progressed after several rounds of chemotherapy.
Clovis wants to expand use of its drug. The data released today suggests that it and rival drugs from Tesaro and AstraZeneca (AZN) are “largely undifferentiated” in terms of efficacy.
But Cowen analyst Boris Peaker argued that safety data gives Clovis’s Rubraca a leg up over Tesaro’s Zejula. He cut his price target on Tesaro $124 from $144.
Taken together, across all BRCA/HRD subgroups rucaparib and niraparib will be viewed similarly in terms of efficacy, but we believe rucaparib is better positioned given the better safety and slightly earlier commercial head-start (treatment label launched in December 2016). As such, we have taken down niraparib peak penetration slightly in all patients subgroups and arrive at our new $125 PT.
But the armlet for PARP inhibitors could total as much as $10 billion. That proves true, the is lots of room for more than one blockbuster player.
link