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With a recently depressed stock price in spite of strong science and major Q4 catalysts approaching, Aptose Biosciences (NASDAQ:APTO) is a high-conviction pick through the end of 2020.
This article explores the science and competitive landscape for molecules in development by Aptose Biosciences, a biotech specializing in the burgeoning field of targeted oncology. Herein I attempt to provide a scientific/medical overview that is in depth as possible without becoming bogged-down for investors who are less scientifically oriented. I also discuss my personal thesis and investment strategies for this name going forward. My hope is that readers are left with a strong understanding of the company's science and near-term catalysts, ensuring that their positions, whether long or short, are well-informed.
CG-806: What is the Market?
APTO's drug candidate CG-806 is, primarily, a reversible BTK inhibitor. BTK, or "Bruton's Tyrosine Kinase" is a molecular target that became a breakthrough for the treatment of various blood cancers through the development of a drug called "Ibrutinib" (trade name Imbruvica). Ibrutinib, an irreversible BTK inhibitor (BTKi), was initially brought to market by AbbVie (ABBV) in 2013 for the treatment of mantle cell lymphoma. Since then, it has gained approvals in numerous indications and become a blockbuster drug, generating over $7B in annual revenues.
In recent years, development of the next generation of BTK inhibitors has taken off, with companies like Loxo Oncology (LOXO) and ArQule (ARQL) (each acquired in 2019 through multi-billion dollar deals) advancing their own mid-stage candidates that boast "reversible" BTK inhibition.
The obvious interest in reversible
