This Day On The Street
Continue to site
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

Aveo Pharma Readies Survival Update For Kidney Cancer Drug

The survival question has been an overhang on Aveo shares but the TIVO-1 study did meet its progression-free survival endpoint. Tivozanib delayed the time before patients' kidney cancer started to grow by a median 11.9 months compared to 9.1 months for Nexavar -- a difference that was statistically significant and which achieved the study's primary endpoint. Tivozanib was also better tolerated than Nexavar, with fewer dose reductions and treatment discontinuations due to adverse events.

"Tivozanib is approvable," said one investor who's bearish on Aveo but not currently short the stock. "The FDA isn't dumb, there was massive crossover in this study. Plus, it's the first kidney cancer trial in which a drug was compared to an active control, so to ding them for that is dumb."

However, this Aveo bear believes tivozanib runs into trouble once approved because it will be the ninth drug marketed for kidney cancer and the fifth drug to share a similar mechanism of action. Pfizer's (PFE - Get Report) Sutent has been the market-leading kidney cancer drug but has recently lost ground to GlaxoSmithKline's (GSK - Get Report) Votrient.

Aveo is running a follow-on study comparing tivozanib against Sutent, with results expected in 2014. A successful study may convince doctors to use tivozanib over Sutent but won't necessarily help against Votrient.

"I'm hoping Aveo shares rally into tivozanib's approval because it so I can short the launch," said the Aveo bear investor.

Aveo bulls believe tivozanib's efficacy is comparable to current crop of leading kidney cancer drugs but safer and easier to tolerate, which will drive market share and sales. RBC Capital's Adnan Butt says tivozanib is worth almost $13 per share to Aveo if the drug's peak market share reaches 15% in the U.S. and 10% in the Europe.

Aveo shares closed Friday at $7.98.

-- Reported by Adam Feuerstein in Boston.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.
2 of 2

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ONXX $0.00 0.00%
AVEO $0.93 0.00%
GSK $42.91 0.00%
PFE $32.71 0.00%
AAPL $93.74 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs