In our view, Myovant (MYOV) is poised for significant value creation in the next 6-12 months, explains John McCamant, biotechnology specialist and editor of The Medical Technology Stock Letter.
In their most recent quarterly update, the company highlighted Relugolix and emphasized that all important timelines remain on track for top-line Phase III data readouts in uterine fibroids from LIBERTY 1 and 2 expected in 2Q and 3Q, respectively.
In addition, the HERO data in advanced prostate cancer is still expected in 4Q. The timeline for endometriosis data from the Phase III SPIRIT trials did, however, slip with top-line data now anticipated in 1Q20, previous guidance was this year.
It looks like slow patient recruitment during the holiday season had an effect and represents a short delay. With multiple data readouts due to be reported before SPIRIT, the company remains in position for significant catalysts in 2019 despite the endometriosis delay.
In our view, all three indications for relugolix have already been clinically de-risked and with $183 million in cash, MYOV is sufficiently resourced through the important upcoming Phase III readouts.
It is not surprising to us to see additional Wall Street sponsorship (Barclay’s) for Myovant given the fact that the company has several near-term high-profile catalysts representing opportunities for significant value creation.
This comes on top of a JP Morgan analyst making Myovant one of their top picks for 2019 back in January. Sponsorship can be particularly important for a very low volume stock like Myovant as there appears to be little supply to soak up any increased volume.
Orilissa — from AbbVie (ABBV) — is priming the market as they have begun a national advertising campaign with TV commercials to raise public awareness for new therapies to treat pelvic pain caused by either uterine fibroids or endometriosis.
This patient awareness campaign is important as there are currently no effective treatments for either affliction. Lastly, with a late stage, de-risked wholly owned asset (x-Japan), the company is a prime takeover candidate.
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