Medivation Inc (MDVN) Stock Upgraded to Buy at Canaccord on Talazoparib Phase 1 Data

Medivation Inc (MDVN) Stock Upgraded to Buy at Canaccord on Talazoparib Phase 1 Data

Canaccord upgraded Medivation shares to Buy on the back of the positive data from talazaparib’s clinical trial

By Aliya Kaleem on Apr 19, 2016 at 3:24 pm EST

Medivation Inc. (NASDAQ:MDVN) shares were upgraded today at Canaccord, based on increased confidence in the Xtandi breast cancer program, along with positive data reported for talazoparib—the company’s investigational agent. MDVN stock remains under pressure despite the upgrade.

Analyst John Newman revised up his rating on MDVN shares to Buy, as he expressed conviction in the Xtandi program. Moreover, he considers data for talazorib as “encouraging.” Mr. Newman projects maximum revenue for the agent to reach up to $472 million by fiscal year 2022 (FY22), and thus, bumped up the target price from $45 to $70.

Recently, the company announced Phase 1 data for talazoparib, which is a highly-potent poly (ADP-ribose) polymerase (PARP) inhibitor. The data was presented at the American Association for Cancer Research’s (AACR) annual meeting 2016, held in New Orleans. The presentation was conducted by University of California Los Angeles (UCLA) associate professor of medicine and UCLA GI Oncology Program co-director Zev A. Wainberg, M.D., during a clinical trials mini-symposium.

The study’s main purpose was to assess the maximum tolerate dose (MTD) of the investigational agent in combination with low-dose temozolomide or irinotecan. It focused on patients, who were intensely pre-treated with advanced malignancies.

The data obtained from the 40 patients indicated that treatment with talazoparib and low-dose chemotherapy resulted in a stable disease or an objective response in 23 intensely pre-treated patients, diagnosed with a variety of advanced cancers. Moreover, the objective responses were seen in every four of seven heavily pre-treated non-BRCA-mutated ovarian cancer patients, when talazoparib was used in combination with either low-dose temozolomide or irinotecan. On the other hand, every six out of seven patients’ non-BRCA ovarian cancer had clinical benefit, and experienced a decrease in the CA 125 levels by almost 50%.

Founder, president, and CEO David Hung M.D., commented: “We feel these data are consistent with talazoparib's potent PARP trapping ability, which we believe makes talazoparib a unique and exciting product candidate, with the potential to be used in combination with DNA damaging therapies across a wide variety of tumor types."

At present, MDVN stock is trading down 1.65% at $52.48, as of 3:14 PM EDT, About 2.76 million shares have already swapped hands by now, compared to the average daily trading volume of 4.17 million shares.

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