Cowen Dives in on Cascadian Therapeutics Inc (USA) (CASC) Following HER2CLIMB Study Amendment


Cowen analyst Boris Peaker weighed in on Cascadian Therapeutics Inc (USA) (NASDAQ:CASC) with a few insights after the company announced that following a recent meeting with the FDA and discussions with the Company’s external Steering Committee, it has amended the HER2CLIMB Phase 2 clinical trial of tucatinib by increasing the sample size so that, if successful, the trial could serve as a single pivotal study to support registration.

Peaker wrote, “We expect the trial to include a substantial portion of patients with brain mets given the study’s enrollment criteria. Notably, the trial permits inclusion of patients with previously untreated and active brains mets which are often excluded from other mBC studies. CASC projects ending 2016 with approximately $60MM on the balance sheet and will provide further guidance on future cash burn in early-2017. CASC currently owns worldwide rights to tucatinib and its patent portfolio, with the composition of matter IP expiring in 2032. We believe the changes to HER2CLIMB are largely in line with expectations and continue to believe that tucatinib’s Phase Ib data indicate a high chance of potential success in the pivotal study.”

As such, Peaker reiterated an Outperform rating on Cascadian Therapeutics, without providing a price target.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Boris Peaker has a yearly average return of 12.4% and a 41.8% success rate. Peaker has a 121.5% average return when recommending CASC, and is ranked #263 out of 4262 analysts.

Out of the 4 analysts polled by TipRanks, 3 rate Cascadian Therapeutics, Inc. stock a Buy, while 1 rates the stock a Hold. With a downside potential of 47.0%, the stock’s consensus target price stands at $3.33.