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Oncothyreon Plunges On Drug Fail; Wedbush Slashes Price Target

Related ONTY
Oncothyreon And Celldex Therapeutics Announce Initiation Of Combination Immunotherapy Clinical Trial Of ONT-10 and Varlilumab
UPDATE: H.C. Wainwright & Co. Initiates Coverage On Oncothyreon On Significant Upside

Oncothyreon (NASDAQ: ONTY) plunged Tuesday after the company's tecemotide lung cancer treatment failed to show any effects in a trial in Japan.

Merck KGaA has exclusive rights to develop and commercialize the drug and informed Oncothyreon it would discontinue the Phase I/II study.

Tecemontide is one of four drugs in Oncothyreon's pipeline and Wedbush's Gregory Wade said the lack of tecemotide results in Japan raises doubts about the company's ONT-10 cancer drug.

Both tecemotide and ONT-10 stimulate the immune system to recognize and attack cells that express MUC1, a protein found on non-small cell lung, breast, colon, kidney, ovarian, pancreatic and prostate cancers.

ONT-10 is currently being evaluated in Phase I clinical trials in patients with solid tumors.

Wade maintained an Outperform rating on Oncothyreon, but cut his target from $6 to $3 per share.

Oncothyreon traded recently at $2.26, down 18.7 percent.

Latest Ratings for ONTY

DateFirmActionFromTo
Oct 2014Wainwright Initiates Coverage onBuy
Mar 2014Canaccord GenuityDowngradesBuyHold
Mar 2014Stifel NicolausMaintainsBuy

View More Analyst Ratings for ONTY
View the Latest Analyst Ratings

Posted-In: Gregory Wade WedbushAnalyst Color News Price Target FDA Analyst Ratings

 

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