BMO Analyst Give Poniard 'Outperform' Rating

NEW YORK (AP) — A BMO Capital Markets analyst said Tuesday he expects shares of Poniard Pharmaceuticals Inc. to perform well, citing his prediction for positive results in a late-stage study of the company's developing cancer treatment.

Shares of South San Francisco, Calif.-based Poniard rose 43 cents, or 6.2 percent, to $7.41 in morning trading. The stock has traded between $1.05 and $9.14 over the last 52 weeks.

BMO Capital analyst Jason Zhang initiated coverage on the stock with an "Outperform" rating and expects shares to double in value to $14 over the next 52 weeks. Still, he said, the prediction is speculative.

"Our rating is primarily based on our prediction for a probable positive outcome in the Phase III SPEAR trial, which is evaluating Poniard's picoplatin vs. best supportive care in second-line treatment of small cell lung cancer," he said, in a note to investors.

Zhang said an in-depth analysis of available data on the drug suggests picoplatin should do significantly better in all types of second-line small-cell lung cancer patients.

"However, given lack of a direct picoplatin versus best supportive care comparison, we reiterate that our prediction is speculative," he said.