Oncothyreon ($ONTY): Raising Capital as Rodman Re-itts the Buy Rating: "Down but not out - PX866 to drive value in 2012"

Oncothyreon ($ONTY) is a biotechnology company dedicated to the development of oncology products that can improve the lives and outcomes of cancer patients. The company is currently developing multiple therapeutic candidates designed to target cancer in specific and effective ways. The pipeline includes both synthetic vaccines and small molecules for a variety of cancer indications. 

Rodman & Renshaw has released a report on Oncothyreon, classifying it as "Outperform" with a "Speculative Risk." The report includes the following investment opinion:  

 

"We are reiterating our Market Outperform rating and 12-month price target of $10 per share for Oncothyreon. Our price target is based on a 2015 discounted revenues and earnings per share multiples analysis. Although the second interim analysis did not live up to investor’s expectations, we continue to believe in the Stimuvax story. The recent data highlights the therapeutic value of Stimuvax, and also serves to validate Oncothyreon’s MUC1 based vaccine technology platform. In addition to Stimuvax and ONT-10, Oncothyreon possesses a broad oncology pipeline, which includes PX-866 (an irreversible inhibitor of PI3K) and ONT-701 (a newly acquired pan Bcl-2 inhibitor)." 

Our Thoughts: Ovarian is a great indication, unmet medical need but tough to crack. Oncothyreon has postponed results but that may not be  bad thing, perhaps patients are living longer. We saw some news of a capital raise underwritten by Cowen and Stifel Nicolas.

Watch this name and the data as it rolls out, it will also impact dendritic cell company, Prima BioMed that chasing the same MUC-1 target.

Rodman Renshaw Report on ONTY

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