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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$ONTY: Oncothyreon initiates phase 1 trial of ONT-10

Oncothyreon ($ONTY) initiates phase 1 trial of ONT-10 ($4.80).

Oncothyreon is a biotechnology company dedicated to the development of oncology products that can improve the lives and outcomes of cancer patients. They are 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.

• The company announced that the first patient has been enrolled in a Phase 1 trial of ONT-10
• The Phase 1 trial is designed to evaluate the safety and immunogenicity of ONT-10 in patients with cancers which commonly express MUC1
• The Phase 1 trial of ONT-10 consists of two parts
• Part 1 will study a dose escalation schedule in up to 48 patients to determine the maximally tolerated and/or recommended dose of ONT-10 administered either once every other week or once every week over an 8 week period
• Part 2 will further investigate the safety of ONT-10 at the maximally tolerated or recommended dose in up to 15 additional patients at the weekly and/or biweekly schedule

The ability of ONT-10 to induce both a humoral and a cellular immune response will be investigated in both parts of the study.

Daily Dose Conclusion: This is an interesting data point in the wake of StimuVax delays which were not perceived well by the marketplace.

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Oncothyreon (ONTY): Files IND for ONT-10 - Vaccine for Ovarian Cancer: Can you say PrimaBioMed ?

News on the tape today that Oncothyreon (ONTY) has filed an investigational new drug (IND) application for ONT-10. ONT-10, a therapeutic vaccine directed at cancers expressing MUC1. Upon completion of the FDA's review of the IND, Oncothyreon expects to initiate a Phase 1 trial of ONT-10. We recently wrote on this and discussed its implications for PrimaBioMed. Please see that note here.

Cell Therapy - Oncothyreon ($ONTY) presents data, Prima BioMed update

A few news events over the last 24 hours caught our attention and in effort to connect the dots we are highlighting them in the context of what impact it may have on the space. Oncothyreon ($ONTY) presented data (actually their partner Merck KGaA) at the American Society of Hematology on Stimuvax.

Stimuvax is a cancer vaccine that targets the MUC-1 antigen (same one that Prima's CVAC targets). The data presented was from the phase 2 trial in Multiple Myeloma (MM). Two phase 3 trials are now ongoing:

• Lung cancer "START" trial, and
• "INSPIRE" (Asian patients).
  

The Phase 2 data presented in Multiple Myeloma looks early but encouraging. The next big data point that investors are watching is the interim look (the second one) for the P3 trial, which should happen in Q3-2012.

What investors may not realize is that PrimaBioMed (ASX: PRR) is also targeting the MUC-1 antigen but using sensitized dendritic cells (just as Dendreon has done successfully with Provenge). PrimaBioMed CEO Martin Rogers has been working on listing this Aussie stock on a US exchange. We think watching Oncothyreon and its impact on PrimaBioMed will be an important connection for investors to watch. See Prima BioMed @ ProActive.