This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

ASCO '11: YM BioSciences Attracts Wall Street

Stocks in this article: YMI INCY NVS

CHICAGO ( TheStreet) -- YM BioSciences (YMI) was the beneficiary of the first Wall Street scrum of ASCO 2011 Friday afternoon.

Dozens of investors and analysts jockeyed for position around a scientific poster detailing interim results from a phase I/II study of YM BioSciences' experimental myelofibrosis drug CYT387. Questions were hurled at the poster's author from the Mayo Clinic, while a few feet away, YM BioSciences' CEO Nick Glover was surrounded by still more investors and analysts.

The American Society of Clinical Oncology (ASCO) annual meeting had just started a few hours ago, but Wall Street was already making its presence felt. The money crowd that showed up to see the YM BioSciences poster all wanted to know the same thing: Is CYT387 a real drug? And is it potentially better than Incyte's (INCY) ruxolitinib, also being developed for myelofibrosis?

Incyte sports an enterprise value of approximately $2 billion, largely because of ruxolitinib in myelofibrosis. Incyte and its partner Novartis (NVS) have completed two successful phase III studies of ruxolitinib and are preparing to seek regulatory approval. New phase III data on ruxolitinib in myelofibrosis will be released at ASCO on Saturday afternoon.

By contrast, YM BioSciences' market value is about $300 million. CYT387 is still in early stage testing and is probably two or three years behind Incyte's drug. Investors are taking a hard look at CYT387 because if the drug is real, YM BioSciences is a cheap stock in comparison to Incyte.

Myelofibrosisis is a disorder in which abnormal bone marrow stem cells produce scar tissue that replaces healthy marrow. Patients with myelofibrosis suffer from anemia and enlarged spleens. Approximately 3,500 people in the U.S. are diagnosed with myelofibrosis annually and about one-third of these patients develop acute myeloid leukemia or bone marrow failure.

The U.S. market potential for a new myelofibrosis drug is in the range of $300 million to $500 million, double that if the drug is also approved and used in Europe, according to analyst estimates.

The buzz for CYT387 is due to the fact that early data suggest the drug effectively treats anemia -- one of three key morbidities associated with myelofibrosis. Incyte's drug ruxolitinib doesn't improve anemia.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,901.13 +96.33 0.54%
S&P 500 2,071.59 +0.94 0.05%
NASDAQ 4,771.9140 +6.5340 0.14%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs