Chemgenex Receives A Booster

Array
(
    [0] => Array
        (
            [0] => ((CXS))
        )

    [1] => Array
        (
            [0] => CXS
        )

)

By Greg Peel

ABN Amro Morgan’s biotech analyst Scott Power reports US pharma company Vertex has suspended its phase I safety trial on a leukemia drug it is developing with Merck, pending further analysis of the trial compound.

Power believes this is good news for local biotech Chemgenex ((CXS)) as it removes another competitor from the market.

The biotech game is all about schadenfreude.

Chemgenex will present a progress report on phase III trials for its own drug (which is hoped to treat the same strain of leukemia) at a major oncology conference in the US in December. Power suggests the data so far are positive.

Power has set a target price of $1.36 for Chemgenex shares with a Buy rating. They are currently trading just below $1.10.

Click to view our Glossary of Financial Terms