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Biotech / Medical : Welcome to the POTP board, the DPP-IV company

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From: idos12/23/2006 6:29:50 AM
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CIBC World Markets:

On 12/21, POTP reported final results from the ph.II trial of talabostat plus
docetaxel in previously-treated pts with stage IIIB/IV NSCLC.
Following verification of the data, the median PFS for the 42 evaluable pts was
4.0 mos, and the overall median survival was 7.8 mos. This is slightly lower
than the 4.2 mos PFS and 8.4 mos overall survival previously reported. 2nd-line
pts had PFS and overall survival of 4.9 mos and 10 mos, respectively.
Important to note, of the 6 responses previously reported, 2 were confirmed by
an independent radiologist, 2 were classified as "qualified," and 2 were
classified as "unconfirmed." Neither previously reported complete response (CR)
was confirmed. This was mainly due to technical limitations of the radiological
assessments. Although the CRs were not confirmed by radiological assessment,
we suspect that they were clinically meaningful, as POTP reported that one of
the pts has been disease-free after 20 mos and the other was disease-free for
10 mos.
We believe this news is somewhat disappointing, as the follow-up assessment
suggests that the response rate to talabostat/docetaxel may be lower than
previously reported. However, at POTP's current levels, we believe expectations
for talabostat's success are low. We expect shares to trade in-line until top-line
ph.III data from the NSCLC trials is reported end-'07.
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