|From: singhtelecom (Rep: 974) reply to mflutie1||Date: 2019-12-05 08:45:39|
|Forum: Spectrum Pharmaceuticals - Thread #674110668||Msg #706 - Part 1/1 (Rec: 0) |
|Welcome back Sir Mflutie !!! I thought someone STOLE your ID , hahahaRe: mflutie is back????? Happy to see your posts again my friend. Let's ma...|
key upcoming catalyst from Phase 2 data for their NSCLC treatment poziotinib in patients with an exon 20 mutation. Data from the first cohort is expected in December while Cohort 2 is out in mid-2020. This is a small niche of patients within the lung cancer realm with around 7,000 patients total in the US (4-9%). Peak sales estimates are around $300M. The exon 20 insertions cause complications within NSCLC patients by adding additional amino acids to the protein sequencing restricting access to the binding pocket of the kinase active site. Poziotinib is a TKI that targets those mutations and has been shown to inhibit continued expansion which assists in cancer cell death. Early data at the World Lung Conference this year showed a 43% remission rate – similar to peer TAK-788 and some skepticism for SPPI due to the fact that it was from only one site. The data follows a winding history for the drug. Initially, it was acquired from Hanmi and was being developed in breast cancer. But, MD Anderson found it was effective in exon 20 mutations and they shifted on to mutated lung. SPPI had applied earlier this year for breakthrough therapy designation for the drug but was denied by the FDA, a setback for the company as they look to enter the market. B Riley was out earlier this Summer with an $18 PT noting they think poziotinib has blockbuster potential and can transform the rapidly changing NSCLC paradigm. Cantor noting earlier this year that with no approved drugs in exon 20, the efficacy bar is likely pretty low. They think a 40% ORR is certainly a positive for the stock but anything above 35% can move shares as well. After conversations with investors, they definitely think there will be a step down from the WLC data, with upside to $20/share+ and downside of $3-$5/share which is cash level.
Option flows have been bullish in SPPI. On 12-2 a trader bought 4,000 December $13/$8 strangles, slightly bearish delta but fits with the Cantor upside/downside scenarios. On 11-26, the Jan. $9/$14 call spread was bought 2000X while the December $10 calls with over 12,000 bought for around $0.60 on 11-15. The January and February $9 calls also with buyers, as noted below. Short interest is 6.3% but its lowest level since 2009.
| Reply to mflutie1 - Msg #2806909 - 12/05/2019 08:31|
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