Tesaro (TSRO) tumbled almost 25% on Monday as investors question its ability to differentiate its drug for chemotherapy induced nausea and vomiting (CINV) from existing NK-1 antagonists after missing secondary endpoints in two phase III trials. Rolapitant achieved the primary endpoint of complete response (CR) in the delayed period (24-120 hours) following initiation of chemotherapy in both a highly emetogenic chemotherapy (HEC) and moderately emetogenic chemotherapy (MEC). The missed secondary endpoints were overall complete response (0-120 hours) and acute complete response (0-24 hours). We believe the stock price movement is an overreaction and presents a buying opportunity for speculative, patient investors with over 100% potential upside versus 26% potential downside over the next 24 months.
Our investment premise...
Only subscribers can access this article, which is part of the PRO research library covering 3,575 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: