As I promised, this information from SBC Warburg Dillon Reed (DR) 12/10:
DEPO: Initiates Phase II DepoMorphine Trial Rating: Buy
DR says that DepoTech announced yesterday that it commenced Phase II trials of DepoMorphine for acute post-operative pain. They say that the Phase II dose-escalation study will involve 60-90 patients and will evaluate safety, efficacy and pharmacokinetics of single doses administered epidurally prior to surgery. DepoMorphine is being studied for use in, but not limited to, such procedures as abdominal, orthopedic and thoracic surgeries, among others.
DR adds that DepoMorphine, a sustained-release DepoFoam formulation of the opiate morphine, is designed to provide two to four days of pain relief after epidural administration. Phase I results involving healthy volunteers reached a maximum tolerated dose of 30mg. Current treatment with morphine sulfate consists of between 2 mg and 10 mg in a 24-hour period. The Phase I trial as well as toxicology studies in animals indicate that a single epidural injection of DepoMorphine can provide effective analgesia for as long as four days.
DR's Outlook: DR comments that DepoMorphine is the company's third product in development and may provide a new alternative in the large market of post-operative pain management. DepoCyt, the company's lead product, is scheduled for review at the December 18 Oncologic Advisory Committee meeting and DR expects a positive outcome, with product sales beginning in mid-1998.
DR believes that DepoTech shares are currently undervalued based on the potential for DepoCyt and the planned aggressive development of its earlier- stage products.
DR continues to recommend purchase of DepoTech shares with a Buy rating.
DR has 2 analysts covering DEPO. They state that this report includes information obtained from sources believed to be reliable but no independent verification has been made, and they do not guarantee
its accuracy or completeness. DR also says that opinions expressed are subject to change without notice. |
