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 drug developer Isis Pharmaceuticals (NASDAQ:IONS) climbed as high as 10% this morning after BMO Capital applauded data from a phase 2 trial of the company's antisense drug in familial chylomicronemia syndrome, or FCS.
So what: BMO maintained its outperform rating on Isis, but a new price target of $43 per share -- up significantly from $31 -- represents 20% worth of upside to Friday's closing price. Isis' ISIS-APOCIIIRx data showed substantial reductions of triglycerides and Apoc-III in patients with FCS, giving BMO plenty of confidence in the drug's revenue potential going forward.
Now what: Management will now discuss its phase 3 plans with regulators and expects to move into a phase 3 program next year in both patients with FCS and patients with severely high triglycerides.
"We believe that the significant unmet medical need for an effective triglyceride-lowering drug for patients with FCS and the robust, consistent effects we observe with ISIS-APOCIIIRx should enable us to rapidly move forward," said Richard Geary, Ph.D., senior vice president of development at Isis.
Of course, with the stock now up a staggering 415% from its 52-week lows and trading at a price-to-sales of 36, Fools will need plenty of biotech smarts to know just how much of that potential is already baked into price.
Fool contributor Brian Pacampara 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.
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