Analysts announced on Tuesday that TESARO Inc (NASDAQ:TSRO) might outdo AstraZeneca plc (ADR) (NYSE:AZN) and Clovis Oncology Inc (NASDAQ:CLVS) if its drug Zejulais combined with other treatments from major pharmaceutical companies.
The suggestion was brought forward by analyst Seamus Fernandez who stated that Zejula would do better when combined with other treatments. He suggested drugs from companies such as Merck & Co., Inc. (NYSE:MRK), Roche Holding Ltd. (ADR) (OTCMKTS:RHHBY) and Bristol-Myers Squibb Co (NYSE:BMY). Fernandez’s suggestion came just one day after Clovis produced strong data supporting its ovarian cancer treatment called Rubraca. The Phase III trials for the drug suggests that the treatment could be more significant than expected in ovarian cancer treatment.
Investors keen on Tesaro, AstraZeneca and Clovis on Tuesday
Wall Street investors were quick to put Tesaro, AstraZeneca and Clovis on their watch list on Tuesday. This is because the three companies are all developing PARP inhibitors. These are drugs that prevent cancer causing enzymes from multiplying. Fernandez believes that differentiating Zejula from the drugs manufactured by the rival firms will ultimately depend on how well it mixes with immuno-oncology drugs to prevent interactions between PD-L1 and PD-1 proteins in the immune system.
“Zejula appears to be the only late-stage PARP inhibitor that is both combinable with PD-1 and PD-L1 inhibitors and crosses the blood-brain barrier,” Fernandez stated.
One of the advantages of Zejula is that it is less toxic in the liver and this is very important for immune-oncology combos and the overall health of the patients. The drug’s ability to cross the blood-brain barrier is also advantageous for the firm because it will help in treating lung and breast cancer which tends to spread to the brain.
Despite his optimistic view about Tesaro, Fernandez brought down his price target for the firm to 143 from 158. However, he maintains a performance rating on the stock. He also believes that the outcome for Tesaro and Clovis will be an even split in ovarian cancer patients who have already gone through two rounds of therapy.
Tesaro stock closed the latest trading session on Wednesday at $149.77.
