Canaccord Chimes in on Radius Health Inc (RDUS) Following Promising Phase 1 Data in Breast Cancer


Yesterday, Radius Health Inc (NASDAQ:RDUS) shares rose a solid 6% on back of RAD-1901 Phase 1 study clinical data that proved to be better than anticipated, indicating a favorable path forward in treating breast cancer. This was a “promising” step forward for Canaccord analyst John Newman, who finds is all the more encouraging that the drug has revealed to be well-tolerated.

As such, the analyst reiterates a Buy rating on RDUS with a price target of $85, which represents a 94% increase from where the shares last closed.

Newman highlights, “RAD-1901 showed an ORR of ~10% for the 400mg dose in mostly third-line metastatic HER2-, ER/PR+ breast cancer, which is better than ORR of 2.1% for fulvestrant in the Phase 3 BELLE-3 study. We believe the 10% ORR for RAD-1901 is meaningful, especially when considering the ~4.0 month median duration of treatment for RAD-1901 compared to ~1.8 months for faslodex in BELLE-3, and we feel that RDUS shares do not reflect the high quality of data for RAD-1901.”

“The BELLE-3 study was a large, recently completed, n=432 patient Phase 3 study in postmenopausal HER2-, ER/PR+ locally advanced or metastatic breast cancer comparing fulvestrant +/- buparlsib (PI3K), which we believe is a good comparator for RAD-1901 in terms of ORR and PFS. We believe the 1.8 median PFS for fulvestrant vs. ~4.0 months for RAD-1901 arm is very informative because it illustrates Stable Disease for RAD-101 and highlights the more meaningful PFS metric,” Newman surmises.

Looking ahead, the analyst anticipates the EMA and FDA will approve abaloparatide, the firm’s osteoanabolic drug that stimulates bone formation and has minimal bone resorption, by the beginning of 2017. A likely approval coupled with the waves RAD-1901 is making in its path to treating HER2-, ER/PR+ metastatic breast cancer has the analyst bullish on this biotech stock.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, John Newman is ranked #4,193 out of 4,279 analysts. Newman has a 32% success rate and confronts a 14.7% loss in his yearly returns. When suggesting RDUS, Newman forfeits 7.6% in average profits on the stock.

TipRanks analytics exhibit RDUS as a Buy. Based on 7 analysts polled in the last 3 months, 5 rate a Buy on RDUS stock, 1 maintains a Hold, while 1 issues a Sell. The 12-month average price target stands at $61.00, marking a 39% upside from where the stock is currently trading.

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  • disqus_rWHtKrhR1j

    Julie, this is a phase 1 for RAD1901, not phase 3, thanks.