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Waiting for Data on CombinatoRx
Tuesday May 6, 3:36 pm ET
By Jason Napodano, CFA
CombinatoRx, Inc. (NasdaqGM: CRXX - News) is engaged in the discovery, development, and commercialization of novel therapeutics that are combinations of approved drugs. CombinatoRx has identified seven product candidates which target multiple diseases like immuno-inflammatory diseases, chronic pain, topical dermatoses, metabolic disease and oncology.
We expect significant news flow on the pipeline candidates in 2008. At this time we would like to see more clinical data before recommending the name. CombinatoRx will also need to raise cash in 2009. The stock may offer an attractive investment opportunity once several candidates move into phase III trials.
We believe CombinatoRx will focus its efforts on advancing its pipeline in 2008. Once the data start flowing in, we expect the company to become more active on the partnership front. CombinatoRx is likely to enter into collaborative agreements with pharmaceutical and biotechnology companies to support the full development and commercialization of selected product candidates. This will help CombinatoRx obtain access to additional development, commercial or financial resources or a large-sales force. We expect to hear announcements regarding partnership deals perhaps during the second half of 2008.
Meanwhile, we expect significant news flow on the different pipeline candidates in early 2008. We note that phase II proof-of-concept data on CRx-191 released in March was positive. Up next are data sets on CRx-102, CRx-197, and CRx-401 all expected during the second half of the year.
We have yet to see phase III data on any of the candidates. The stock may offer an attractive investment opportunity once CRx-102 moves into phase III trials and the other candidates move forward. In the meantime, we rate the stock a Hold with a $5 price target. |
