Why Oncotheryeon, Inc., OncoMed Pharmaceuticals, Inc., and Array BioPharma Inc. Stocks Jumped Today

Three biotechs climb after a competitor's trial success boosts hope across the HER-2 breast cancer treatment market

Jul 23, 2014 at 2:22PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Oncothyreon (NASDAQ:ONTY), a developmental biotech, climbed more than 13% today, while fellow biotech stocks OncoMed (NASDAQ:OMED) and Array BioPharma (NASDAQ:ARRY) roared higher by as much as 10% and 16.4%, respectively, following a positive trial result from Puma Biotechnology's HER2-positive breast cancer therapy neratinib.

So What: Neratinib's astronomical success in a phase 3 trial for increasing disease-free survival in early stage HER2-positive breast cancer by 33 % as compared to a placebo as sent shock waves throughout the biotech industry. Wall Street's pushed stocks of fellow clinical-stage HER2-positive breast cancer drug developers higher on the day in light of the positive trial data. Array and Oncothyreon collaborate on ARRY-380, a phase 1 candidate for treating the disease, while OncoMed is developing vantictumab, which last year launched a phase 1b trial targeting HER2-positive breast cancer. OncoMed did

Now What: Puma might be looking to file for approval next year for neratinib after the success, but OncoMed, Oncothyreon, and Array are in much earlier-stage trials for their own HER2-positive cancer treatments. Still, the strong showing by neratinib has lifted confidence across the biotech sector that agents specifically targeting the HER2 growth factor have a major place as a lucrative adjuvant treatment.

While OncoMed, Oncothyreon, and Array still have a long way to go to showing similar gains from their own therapies, this is a market worth pursuing: Analysts have pegged neratinib as racking up $4 billion or more in peak sales if cleared by the FDA, with an 85% chance at regulatory approval.

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Dan Carroll has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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