|Zalicus release confirms bullish sentiment|
|Monday, 10 January 2011 12:39|
Monday, Zalicus (Nasdaq:ZLCS) released an update that clearly confirms analyst recommendations that Zalicus could be headed higher.
Zalicus announced this morning that its oncology research collaborator, Novartis, was extending their contract by a year to May 2012, sending shares up 11% in early trading. We've been following the Zalicus story since early December and shares have appreciated well over 125% since our initial report. Here are some quick notes to consider:
First, Synavive’s phase 2B clinical design almost looks identical to the one recently completed by Sanofi-Aventis/Fovea for Prednisporin. The phase 2B study is going to have 5 arms, have the usual protocols, enlist 250 patients, but the real surprise is the study is only targeting 12 weeks (with a year extension). As a combination therapy, Synavive like Prednisporin is proving Zalicus’s unique position move its combinatorial platform through clinical trials at a pace not seen before. Shareholders should receive news on Synavive no later than early autumn.
Second, Zalicus announced it is filing an IND for “Selected Z944, a lead Ion channel compound, to advance into IND-enabling toxicology studies prior to the initiation of a Phase 1 study in 2011 and identified multiple other preclinical compounds that are being evaluated for additional clinical starts in 2011”
Long-term investors were surprised to learn it is a T-type vs N-type, though Zalicus is experimenting with numerous potential candidates including sodium and calcium ion channels. But the big news here is, not only has Zalicus filed the IND for one drug candidate, the press release revealed for the first-time that they have “Multiple other Ion channel compounds, including both calcium and sodium channel blockers, are being evaluated for potential additional clinical starts in 2011” (IBID). This would exponentially increase the company’s overall value. Novartis and Amgen must be attuned to this.
Monday news confirms that the company is carefully executing on its strategic plan to become a leader in the pain and inflammation space. Volume and price action on Monday was very volatile as the company’s shares rose.
Disclosure: No Positions