Tocagen: Highly Promising And Deeply Undervalued Biotech

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About: Tocagen Inc. (TOCA)
by: Michael Frazis
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Michael Frazis
Long/short equity, special situations, hedge fund manager, macro
Summary

Tocagen has excellent data but is priced like a biotech startup.

Tocagen cured roughly a quarter of glioblastoma patients in a Phase I trial.

The pivotal trial was fully enrolled ahead of schedule, and at the first interim point, investigators recommended the trial continue with no change to the method.

A successful Phase III trial would lead to a material revaluation, in line with other gene therapy plays.

Tocagen's primary asset is a development program for glioblastoma, an incurable brain cancer.

The company has excellent clinical data, but is priced like a concept biotech, with no in-human data. This value gap between the