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Biotech's Topline Phase 3 HER2-Positive Breast Cancer Data 'Impresses'
Research Report

Source:

The results and commercial potential of the therapeutic are discussed in an H.C. Wainwright & Co. report.

In an Oct. 22 research note, H.C. Wainwright & Co. analyst Andrew Fein reported that the "remarkable HER2CLIMB topline positions Seattle Genetics Inc. (SGEN:NASDAQ) as a strong player in the breast cancer space." Accordingly, the investment bank increased its target price on the biotech to $140 per share. In comparison, the current share price is about $100.89.

HER2CLIMB is a Phase 3 study evaluating tucatinib plus trastuzumab plus capecitabine against trastuzumab plus capecitabine in thirdline HER2-positive breast cancer patients.

Regarding the recently released topline results, Fein commented, "We are impressed by the remarkable survival benefits in the overall patient population, with a 46% risk reduction of disease progression or death (p<0.00001), as well as a 34% risk reduction of death (p=0.0048)." The results were even greater among patients with brain metastasis; 52% showed reduction of risk for disease progression or passed away (p<0.00001).

Fein pointed out that "the differentiating value of tucatinib suggests a strong commercial outlook in the competitive HER2+ breast cancer landscape," particularly in the subpopulation of patients with brain metastasis, where the need is the greatest. Unlike antibody-based treatments, tucatinib penetrates the brain, making it ideal for use as a complement to those therapies rather than a direct competitor. Also, tucatinib does not bind to the EGFR receptor and as such, has as better safety profile.

With respect to another tucatinib clinical trial, HER2CLIMB-2, for which the dosing of patients began earlier in October, H.C. Wainwright believes topline data from it will also be a "win," noted Fein.

This Phase 3 study is evaluating tucatinib plus ado-trastuzumab emtansine, or T-DM1, in HER2-positive breast cancer patients. "We point that tucatinib may be used in an off-label setting for brain metastasis patients ahead of the study readout, due to highly unmet medical need and the superior activity of tucatinib in this patient population," the analyst added.

H.C. Wainwright has a Buy rating on Seattle Genetics.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures from H.C. Wainwright & Co., Seattle Genetics Inc., Initiating Coverage, October 22, 2019

Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months.

I, Andrew S. Fein, Alicia Yin, Ph.D., and Matthew Caufield, certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.

None of the research analysts or the research analyst's household has a financial interest in the securities of Blueprint Medicines Corporation, Deciphera Pharmaceuticals, Inc. and Turning Point Therapeutics, Inc. (including, without limitation, any option, right, warrant, future, long or short position).

As of September 30, 2019 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Seattle Genetics Inc.

Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.

The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.

The Firm or its affiliates did not receive compensation from Seattle Genetics Inc. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.

The Firm does not make a market in Seattle Genetics Inc. as of the date of this research report.

H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.




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