By Hassan
Malik
Binary
events are perhaps the single most important factor influencing the movement of
biotech stocks. Positive results can send share prices soaring while negative
results can cause a stock price to plunge. RBC recently focused on eight stocks
with Phase 3 data expected in 2015. Of these 8 stocks, the following 3 are
rated “Outperform” by RBC and may have upcoming positive Phase 3 data.
Ocular Therapeutix, Inc. (NASDAQ: OCUL):
Ocular is focused on the development and commercialization of therapies for various
diseases of the eye using its hydrogel technology. Currently, the company’s
lead product candidates are in Phase 3 clinical development for post-surgical
ocular inflammation and pain and Phase 2 clinical development for glaucoma and
allergic conjunctivitis. Analysts at RBC have reviewed the company’s positive
Phase 2 data highlighting that the risk/reward is reasonably equal considering
that a positive Phase 3 readout for OTX-TP is expected to be around the corner.
The stakes and upside could be much greater if positive results are announced
for the Phase 2 study for OTX-TP in glaucoma.
XOMA Corporation (NASDAQ: XOMA):
XOMA specializes in the discovery and development of antibody-based
therapeutics. Its proprietary products include XOMA metabolic activating,
sensitizing and antagonizing/deactivating antibodies that are in preclinical
stages for the treatment of diabetes patients, a multi-antibody product for the
treatment of human botulism poisoning and a topical antibacterial product for
the treatment of human immune system. Analysts from RBC have focused on two studies.
The Phase 3 data for gevokizumab in two non-infectious uvetis (NIU) and one
Behcet’s disease study. The Phase 3 data is expected by mid-year for the
Bechet’s and end of 2015 for NIU. RBC analysts feel that the risk/reward at
current levels is even and while data has been positive, trial enrollments and
events are pushing out the timeline.
Aerie Pharmaceuticals, Inc. (NASDAQ: AERI):
The clinical-stage pharmaceutical company specializes in the discovery,
development and commercialization of first-in-class therapies for the treatment
of patients with glaucoma and other diseases of the eye. Analysts at RBC are
positive on the potential of Phase 3 results, concluding that “positive results
can drive the stock into the $40-$50 range.” However, negative results could
knock the stock down to the single digits. The RBC rating for its shares is
Outperform; Speculative Risk, with a price target of $45. The Thomson/First
Call consensus price target is $40.40.
Disclaimer: This article was posted with
the permission of a third-party contributor and the opinions contained
therein do not necessarily reflect those of SmallCapPower. SmallCapPower
does not endorse any investment advice provided by these third-party
contributors.
Please consult your investment advisor
before making any investment decisions. Ubika Corporation and its
divisions SmallCapPower, Ubika Communication and Ubika Research are not
registered with any financial or securities regulatory authority in
Ontario or Canada, and do not provide nor claims to provide investment advice
or recommendations to any visitor of this site or readers of any content
on this site. – See more at: http://www.smallcappower.com/posts/small-cap-power-disclosure
