2 Bright Biotech Stocks: Medivation, VolitionRx
One way to offset the current market uncertainty is to look for news driven stocks that appear to be paving the way for future growth. This is especially true in the biotechnology sector where one positive news announcement can help pave the way for years of innovation. Two companies that have released recent positive announcements include Medivation (NASDAQ:MDVN) and VolitionRx (VNRX.OB). Investors should keep their eyes on both of these promising companies.
Medivation is a biopharmaceutical company focused on the rapid development of novel therapies to treat serious diseases for which there are limited treatment options. The company’s flagship product is XTANDI, which is FDA approved for the treatment of patients with metastatic castration-related prostate cancer (or, mCRPC) who have previously been treated with chemotherapy. In the AFFIRM Phase 3 trial, men treated with XTANDI lived for a median of 18.4 months compared to just 13.6 for men taking the placebo.
While that was great news, the hope all along was that Medivation could develop a first-line treatment for the disease. This would relate to men whose prostate cancer has spread but remain relatively symptom free. On Tuesday morning, that hope turned into a very real possibility when the company announced results from its Phase 3 PREVAIL trial of enzalutamide in men with metastatic prostate cancer. The trial was evaluating enzalutamide in men who have failed androgen deprivation therapy and have few or no symptoms. The results demonstrated a statistically significant reduction both in the risk of death and a delay in cancer progression. Several important data points were:
- Enzalutamide reduced the risk of death by 29 percent as compared to the placebo.
- Men taking enzalutamide experienced a 17-month delay in having to initiate chemotherapy compared to men taking the placebo.
- Of the patients, 78 percent taking enzalutamide experienced a PSA decline of 50 percent or more, compared to just 4 percent in the placebo group.
The full data report will be released on January 30. Needless to say, shares have soared since the announcement. Medivation’s share price is up approximately 10 percent since Tuesday as investors continue to bet an extremely positive future for the company. JPMorgan (NYSE:JPM) also upgraded its price target on Medivation to $101.
Last year, the company generated $181.7 million in total revenue. Through the first three quarters of 2013, Medivation generated $148.2 million which puts it ahead of 2012′s pace. Given this new data, investors should be excited about the possibility of the FDA approving enzalutamide. It would dramatically increase the revenue that the company brings in and make the company a strong acquisition candidate.