From the "Robertson Stephens Daily Growth Stock Update"
10/3/00 7:30:24 AM
Tanox, Inc. (NASDAQ: TNOX $35.13)
Buy
Jay Silverman, Biopharmaceuticals
“Xolair (E25), Tanox’s lead compound, is near commercialization with its BLA accepted for
FDA review in September,” said Silverman. “Xolair, an anti-IgE monoclonal antibody, is a
novel drug for treating and preventing allergic rhinitis and allergic asthma. Partnered with
Genentech and Novartis, Xolair produced impressive results from completed Phase III clinical
trials. FDA approval may be achieved as early as the first quarter of 2001. In our opinion,
Xolair has blockbuster potential given its efficacy and substantial market size. We estimate
that global sales will begin in 2001 at $101 million, break $1 billion in 2003 and approach
$2 billion by 2005. Enrollment in a Phase IIIb Xolair study should resume in a few weeks.
Enrollment for this trial was placed on temporary hold last month. Two monkeys died in a
preclinical study on E26, a second generation anti-IgE antibody, after receiving doses up to
27 times the human dose. In our view, this event should not affect the FDA’s review of Xolair.
We reiterate our Buy rating on the shares and our 12-month price target of $46 per share.” |
