Oncothyreon Plunges On Drug Fail; Wedbush Slashes Price Target
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
|Mar 2014||Canaccord Genuity||Downgrades||Buy||Hold|
|Mar 2014||Stifel Nicolaus||Maintains||Buy|
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