wtd, I think that a more complete understanding of the upcoming Science article will really get the smart money on board before the article comes out and the street figures out the importance.
Most of the therapeutic agents sold by Biotechs are poplypeptide hormones. The compounds are injected to get into the patient and then require an intricate signal transduction mechanism to get the signal into the cell and in front of the appropriate genes (to turn them on or off).
LGND's approach targets the back end of this process, the STATs that actually turn on the genes. These STATs are much like the IRs in the non-polypeptide system. These compounds represent the lion's share of pharmaceutical products. The pharmaceutical products are already small molecules, so they can be taken orally. However, the Biochem products have to be injected, which in many instances is inconvenient and in almost every instance, more expensive.
The upcoming article will show that small molecules can mimic the molecular signaling pathways initiated by poplypeptide hormones. The reported one is for GM-CSF, which could replace Neupogen and Leukine. The markets for these drugs are huge. If fact the STATs market is on a par with the IR market. However, the STATs technology is newer, so there are no products that have entered trials yet.
LGND's paper will establish their leadership position. Just as they will be the first profitable targeted drug discovery company because of their success with retinoids and rexinoids, they will assume a similar position with STATs. The technology behind GM-CSF will apply to all hormones that signal through STATs. There will be room for improvement (some of the same STATs that are used by GM-CSF are also used by leptin) and just as combinations of IRs will be most specific and effective, combinations in STATs will eventually become the most effective approach.
As the street realizes the significance of this accomplishment, they will begin to understand LGND's potential. I expect attendees of the conference and readers of this board to realize the significance before the street does. |
