UPDATE: Wedbush Securities Downgrades Oncothyreon to Neutral, Lowers PT

In a report published Wednesday, Wedbush Securities downgraded its rating on Oncothyreon ONTY from Outperform to Neutral, and lowered its price target from $31.00 to $2.00. Wedbush Securities noted, “ONTY continues to develop PX-866, ONTY's pan-PI3K inhibitor, with Phase II studies in lung cancer and colon cancer reading out possibly in H1:13 and head & neck cancer, glioblastoma and prostate cancer possibly by mid-13. Recall, ONTY has several trials on going for PX-866 including, PX-866 + docetaxel in head and neck cancer and NSCLC, PX-866 + cetuximab in head and neck and colorectal cancer, and as monotherapy in a trial in prostate cancer patients as well as in glioblastoma patients. Downgrading to NEUTRAL, lowering price target to $2 from $31. We derive our price target from adding cash/share of $1.60 to a 6x multiple of our estimated 2017 PX-866 revenues, discounted 35% annually.” Oncothyreon closed on Tuesday at $2.05.