Oncomed Pharma (OMED -9%) extends yesterday's losses after announcing that demcizumab had missed its primary endpoint in a Phase 2 trial for pancreatic cancer, while partner Bayer decided not to exercise its option to develop two other OMED cancer drugs; shares are -43% in two days.
But H.C. Wainwright analyst Shaunak Deepak maintains a Buy rating on the shares with a $9 price target, saying the news “does not necessarily mean the development of these assets is over.”
Deepak says OMED expects to report data from its discontinued Phase 2 trial for demcizumab in non-small cell lung cancer later this quarter, along with preliminary data from the Phase 1B study, although Deepak believes this is unlikely following the failure of the pancreatic cancer trial.
Yesterday, Wells Fargo defended the stock while lowering its stock price target range to $9-$10 from $19-$25.
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