If GTX Can Finally Catch A Break, The Rewards Look Worthwhile
24.05.12
Disappointment is a fact of life for biotech investors, but GTX ( GTXI ) seems to have had a little more than its fair share in its short history. Not only did a once-promising prostate cancer drug (toremifene) fail its Phase 3 trial in 2010, but the company saw a once-promising partnership wit h Merck ( MRK ) go south when the company re-evaluated its clinical priorities (and cost-cutting plans) after acquiring Schering-Plough.
More recently, the company's plans to develop Capesaris as a prostate cancer treatment came into serious doubt as the FDA ordered a clinical hold due to high rates of venous thromboemobolic (VTE) events in the Capesaris patient groups. Given that these deep-vein blood clots can lead to fatal pulmonary embolisms, the FDA's concern is understandable and it's unclear now as to whether there is a valid way forward with this drug.
Ostarine The Real Story
Capesaris would have been a "nice to have" drug for GTX, and may not yet be dead (more on this later), but Ostarine is the real prize asset at GTX. This also happens to be the drug that Merck returned back to the company in 2010.
Source: Seeking Alpha