UBS Says Sunesis Leukemia Pivotal Trial Success 'Likely'

Sunesis Pharmaceuticals SNSS gained 10 percent Wednesday to near a year high after an analyst said success is "more likely than not" for the company's development drug for leukemia.

With key data from a Phase III pivotal trial expected in coming weeks, UBS' Andrew Peters expects an "approvable" outcome.

But if indeed the drug, called Qinprezo, can be approved by the U.S. Food and Drug Administration, that still begs the question of the degree of its benefits.

"The FDA has historically approved oncology drugs with only a 'modest' benefit only to see sales disappoint," Peters said in a note maintaining a Buy rating and $14 target.

"The entire data set will be critically important to consider Qinprezo as a value proposition," Peters said.

While Peters is optimistic Qinprezo will deliver significant benefits, even merely clearing the approval hurdle in his view would offer upside to Sunesis shares.

Shares closed at $8.23, up 9.8 percent.