Pharmion, GPC Biotech Shares Soar
Pharmion, GPC Biotech and Spectrum Shares Gain on Positive Late-Stage Satraplatin Study
Shares of several partnered biotechnology companies surged Monday after a prospective prostate cancer treatment lowered progression rates in a late-stage study.
Pharmion Corp. gained $3.92, or 21.8 percent, to reach $21.93 in afternoon trading on the Nasdaq, as trading volume rose more than sixfold from its average. Shares have traded between $14.76 and $23.34 over the last 52 weeks.
Meanwhile, American depositary shares of Germany-based GPC Biotech AG jumped $4.46, or 31.8 percent, to $18.46 on the Nasdaq, as trading volume surged to more than elevenfold. Early in the day, the stock climbed to a new 52-week high of $19.45, replacing the previous high of $18.59 set on Feb. 27.
The study showed that prostate cancer patients receiving satraplatin with prednisone had a 40 percent lower risk of disease progression, compared with those given placebo with prednisone. Boulder, Colo.-based Pharmion said it plans on filing a marketing application for the drug in Europe during the first half of 2007 while GPC Biotech plans to file with the Food and Drug Administration by the end of the year.
The news prompted Lazard Capital Markets analyst Matthew S. Osborne to upgrade Pharmion's stock to "Buy" from "Hold" with a $28 price target.
"We expect satraplatin to contribute meaningfully to Pharmion revenues," he said in a note to investors.
The assessment, which factors in competition, said the modest penetration of the European market could generate sales of $112 million by 2011 for the drug's current indication as a second-line treatment. Possible expansion to other uses leaves room for potential upside.
As part of the collaboration, Pharmion will pay GPC Biotech 26 percent to 30 percent royalties on sales of the drug below $500 million.
Osborne also reaffirmed his "Buy" position with a $10 price target on Spectrum Pharmaceuticals. The Irvine, Calif.-based company said it could see up to $20 million in milestone payments stemming from U.S. and European approval. It is partnered with GPC Biotech.
The stock rose $1.32, or 37.8 percent, to $4.81, as trading volume soared more than 32 times its average. Shares have traded between $3.36 and $5.69 over the last 52 weeks.
Pharmion, GPC Biotech and Spectrum Shares Gain on Positive Late-Stage Satraplatin Study
Shares of several partnered biotechnology companies surged Monday after a prospective prostate cancer treatment lowered progression rates in a late-stage study.
Pharmion Corp. gained $3.92, or 21.8 percent, to reach $21.93 in afternoon trading on the Nasdaq, as trading volume rose more than sixfold from its average. Shares have traded between $14.76 and $23.34 over the last 52 weeks.
Meanwhile, American depositary shares of Germany-based GPC Biotech AG jumped $4.46, or 31.8 percent, to $18.46 on the Nasdaq, as trading volume surged to more than elevenfold. Early in the day, the stock climbed to a new 52-week high of $19.45, replacing the previous high of $18.59 set on Feb. 27.
The study showed that prostate cancer patients receiving satraplatin with prednisone had a 40 percent lower risk of disease progression, compared with those given placebo with prednisone. Boulder, Colo.-based Pharmion said it plans on filing a marketing application for the drug in Europe during the first half of 2007 while GPC Biotech plans to file with the Food and Drug Administration by the end of the year.
The news prompted Lazard Capital Markets analyst Matthew S. Osborne to upgrade Pharmion's stock to "Buy" from "Hold" with a $28 price target.
"We expect satraplatin to contribute meaningfully to Pharmion revenues," he said in a note to investors.
The assessment, which factors in competition, said the modest penetration of the European market could generate sales of $112 million by 2011 for the drug's current indication as a second-line treatment. Possible expansion to other uses leaves room for potential upside.
As part of the collaboration, Pharmion will pay GPC Biotech 26 percent to 30 percent royalties on sales of the drug below $500 million.
Osborne also reaffirmed his "Buy" position with a $10 price target on Spectrum Pharmaceuticals. The Irvine, Calif.-based company said it could see up to $20 million in milestone payments stemming from U.S. and European approval. It is partnered with GPC Biotech.
The stock rose $1.32, or 37.8 percent, to $4.81, as trading volume soared more than 32 times its average. Shares have traded between $3.36 and $5.69 over the last 52 weeks.
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