Commenting on the abstracts for the annual American Society of Clinical Oncology, or ASCO, meeting released after market close
on Wednesday, Stifel gave its overview of the specific abstracts. The ASCO is scheduled to be held
June 2–6 this year.
Sell-Off In NewLink Genetics Unfounded
Analysts Stephen Willey, Prakhar Verma and Philomena Kavya said the weakness in NewLink Genetics Corp (NASDAQ:
NLNK) in the after hours, when it slumped over 15 percent,
was unfounded. The view is based on a duo factors.
The analysts said the 9 percent/33 percent ORR/DCR rates observed in the dose-escalation portion of the Phase IB of the trial
involving atezolizumab/navoximod reflected a heavily pre-treated population with heterogenous/undefined tumor types
receiving sub-optimal dosing. This combination is used to treat patients with locally advanced or metastatic solid tumors.
The result was in line with the single-digit ORRs observed in heavily-pretreated expansion cohort patients receiving
epacadostat/pembrolizumab.
Another premise, the analysts noted, was the totality of the epacadostat/pembrolizumab data in less heavily pre-treated patients
appears to confirm the utility of IDO1 inhibition in other tumor types beyond melanoma.
Strength In GlycoMimetics Appropriate
Stifel believes the after-hours strength in GlycoMimetics Inc (NASDAQ: GLYC) shares (up over 37 percent) was appropriate, given updated P1/2 GMI-1271 data
in both newly-diagnosed and relapsed/refractory AML patients. The relapsed/refractory AML patients, according to the firm, serve as
the basis of a FDA-granted Breakthrough Therapy designation.
"We believe updated P1 larotrectinib data in pediatric patients harboring a variety of different NTRK alterations is early but
encouraging," the firm added.
Late Data To Dictate Sentiment On Loxo Oncology
Meanwhile, on Loxo Oncology Inc (NASDAQ: LOXO), the firm thinks late-breaking registrational data at ASCO would
appropriately dictate sentiment in Loxo shares.
ASCO Data May Not Impact Array, Exelixis And MEI Pharma
Stifel said additional abstract data for Array Biopharma Inc (NASDAQ: ARRY), Exelixis, Inc. (NASDAQ: EXEL) and MEI Pharma Inc (NASDAQ: MEIP) does not materially impact its thesis on these names.
On the other hand, the firm expects sentiment around both Array Biopharma and Exelixis to be
more influenced by competitive melanoma and RCC data presentations, respectively.
Concluding, the firm said, "We continue to recommend NLNK, GLYC, and LOXO shares in front of next month's meeting."
In Pre-Market Trading
- NewLink Genetics was slumping 15.22 percent to $13.65.
- GlycoMimetics was jumping 23.09 percent to $5.37.
- Array Biopharma was slipping 0.64 percent to $7.86.
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