This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Biotech Medarex Misses the Mark

BOSTON -- I'm not one to shy away from controversy, so I'll get right to the point: I've spent a few days digging into Medarex's (MEDX) skin cancer drug MDX-010. What I found wasn't very impressive.

I don't believe the current phase III studies are going to yield positive data strong enough to warrant the drug's approval.

The drug, which also goes by the name ipilimumab, just isn't very potent when used by itself (as monotherapy) in patients with advanced melanoma, or skin cancer. That's the conclusion I draw from a look at previously conducted clinical trials.

If a drug fails to impress in phase II trials, it's hard to have much confidence in a successful outcome from phase III trials. That's conventional wisdom in the biotech sector -- and it usually serves investors well.

Medarex shares had been moving strongly in the past three months as investors await the results from a trio of phase III monotherapy studies of MDX-010 in patients with advanced melanoma. The stock closed Friday at $15.55, off more than 6%.

The data are expected before the end of the year, hopefully in September or October.

These are registration studies, which means that if they're successful, Medarex and partner Bristol-Myers Squibb (BMY - Get Report) say they will file for the drug's approval with the Food and Drug Administration.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BMY $59.47 -1.88%
DNDN $0.06 -6.02%
AAPL $112.76 -0.47%
FB $89.43 -1.74%
GOOG $618.25 -1.92%

Markets

Chart of I:DJI
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASDAQ 4,776.5080 -51.8170 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs