After the presentation of detailed Pelabresib study data at the annual conference of US hematologists on Monday, MorphoSys' stocks are recording significant gains. The biotech company presented results from its Phase 3 study of its hopeful drug Pelabresib for the treatment of Myelofibrosis at the conference.
Myelofibrosis, a rare blood cancer originating in the bone marrow, can be characterized by anemia, enlarged spleen, and other undesirable side effects. The new results presented at the American Society of Hematology (ASH) conference in San Diego show significant improvements in all four disease characteristics with the combination therapy of Pelabresib and Ruxolitinib.
This applies particularly to the reduction of the spleen, which is considered a crucial factor for the survival of patients. "These data suggest that Pelabresib and Ruxolitinib could bring about a paradigm shift in the first-line treatment of this severe disease," commented US hematologist Raajit Rampal.
The results were evaluated as overall positive by industry expert Xian Deng from Swiss major bank UBS. Especially the results regarding anemia are promising. It is expected that the US approval of the drug can reach a peak potential of 1.1 billion US dollars, which could lead to an estimated stock value of 35 euros.
Even JPMorgan expert James Gordon expressed a positive opinion on the study results and emphasized that despite varying efficacy in patients with moderate and high risks, the overall data provide a good chance for approval in the moderate risk group.
While the initial results of the study in November were marked by secondary objectives and led to a clear reaction in stock prices, investors are now taking action again as the hope for approval in the USA is not extinguished.
The share reached the highest level since mid-November at 28.48 euros and recorded a price increase of 13.27 percent to 28.08 euros. Experts estimate the peak potential of the drug at least one billion US dollars and consider a possible approval as the biggest catalyst for the shares.
Despite the promising results in the medium risk area, an explanation for the results in the high-risk group is still lacking. Gordon from JPMorgan estimates that in the event of approval in the medium risk group, the stocks could reach a value of 52 euros, while his colleague from UBS assumes a value twice as high, namely 35 euros.
Investors, however, should bring patience and a certain tolerance for risk, as the stocks have experienced a roller coaster ride in recent weeks. After a drop in price to 14.52 euros in November, the price quickly climbed back up to almost double within three weeks. The secondary goals of the study had opened up a significant price gap, but were not seen as an obstacle for US approval.
