UPDATE: Piper Jaffray Initiates Oncothyreon at Underweight on Pipeline Risk

Piper Jaffray initiated coverage on Oncothyreon ONTY with an Underweight rating and a $1.00 price target. Piper Jaffray commented, "Following Stimuvax's implosion, PI3K-inhibitor PX-866 remains as the lead candidate. While PX-866 has limited intriguing but early data, we see meaningful levels of programmatic risk given its legacy, mechanism, and well-heeled competition in the PI3K space. We view PX-866's pan-PI3K activity and irreversibility as possibly having efficacy and safety implications. Proof of concept PIIa studies should read out this year in colon & lung (early 2Q), brain & prostate (end 2Q), and head/neck (late 2H), all of which we expect to “require interpretation”. Oncothyreon closed at $2.27 on Thursday.