While cancer-fighting never ceases to be a noble endeavor, sometimes it just doesn’t work out. That’s what happened to biotech stock Oncolytics Biotech (NASDAQ:ONCY) as it ran a Phase 2 trial for its breast cancer-fighting drug and came back with results a lot less positive than it wanted. Less positive than its shareholders wanted as well, based on the double-digit drop the stock suffered in Friday afternoon trading.
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Oncolytics’ cancer fighter, known as pelareorep, was used as part of a combination therapy to attack breast cancer. Oncolytics even planned to take some of the results to an upcoming meeting of the American Society of Clinical Oncology. The good news was that there was a solid set of results for the combined efforts of pelareorep, avelumab, and chemotherapy paclitaxel, the second and third components of the combination treatment. However, there were some significant safety problems that got in the way. Apparently, said safety issues were sufficient that one in three patients stopped using either pelareorep or avelumab during the trial.
The news may not have been everything investors wanted, but apparently, it’s enough to keep going into Phase 3 trials. Oncolytics is readying for a “two-arm” Phase 3 trial on pelareorep combined with paclitaxel. Interestingly, T-cell fraction rates were spotted when using pelareorep and paclitaxel but not when using all three components at once.
While this test didn’t turn out so well, it’s clear that analysts aren’t overly concerned. With six Buy ratings, Oncolytics Biotech stock is unanimously considered a Strong Buy. Further, with an average price target of $6.80, Oncolytics Biotech stock also comes with 279.89% upside potential.
