UPDATE: Bloom Burton & Co Downgrades Oncolytics Biotech to Hold on Valuation
Bloom Burton & Co. reduced its rating on Oncolytics Biotech (NASDAQ: ONCY) from Buy to Hold.
Bloom Burton & Co commented, "We maintain our cautious outlook on the outcome of the ongoing head & neck cancer trial but are encouraged with these early data. If the trial shows a meaningful increase in PFS in either the whole patient population or a segment thereof, we believe this will provide justification to move ahead with a pivotal trial. We believe the shares are fairly valued at current levels, but note that our model assumes success only in patients with head & neck cancer with metastatic disease. If the drug is able to show positive results in other indications or used in neoadjuvant disease, then the market potential could be much greater. At this time, we prefer to maintain our cautious outlook until we see more meaningful data."
Oncolytics Biotech closed at $3.38 on Monday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.