Ignyta's Entrectinib Data May Come By Year's End; Cantor Keeps Buy Rating, But Stock Slips 4%

Cantor analyst Mara Goldstein likes

Ignyta IncRXDX

shares for the opportunity provided by Entrectinib, which has multiple indications. As a result, she is confident that the drug could generate a bigger market than expected. The brokerage reiterated its rating of Buy and kept $18.00 as his price object on the shares of the company.

The analyst expects final data for Ignyta's Drug study might come before the end of the current year. However, the brokerage pointed out that the regulator's "Pediatric Oncology Subcommittee will discuss investigator interest in exploring potential pediatric development plans for five drug candidates, including Entrectinib, on June 29th."

Goldstein wrote, "An upcoming FDA pediatric subcommittee meeting could highlight data and indicate a path forward in pediatric populations, which would be additive, in our view. Our valuation has been solely focused on entrectinib, leaving the remainder of the pipeline for potential upside, though we expect other pipeline assets to gain more value as data emerge through this year and next.",/p>

Furthermore, the Cantor analyst views the meeting as "more informational than action oriented," adding that "the opportunity to discuss data in this forum could be additive to the shares."

In conclusion, the analyst believes it's possible to see final data from the STARTRK-1 study by the end of this year and additional data for RXDX-105. Moreover, its possible Ignyta will offer an enrollment update on the STARTRK-2 trial sometime next year, which would greatly expand the program's visibility.

At time of writing, the stock had slumped 4.05 percent on the day to $5.21.

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