Ziopharm Oncology's Global Strategy Provides Potential Upside for Investors
Steven Breazzano submits:ZIOPHARM Oncology (Nasdaq: ZIOP) – with operations based in Boston, MA (and an executive office in New York, NY) engages in the development and commercialization of a small molecule cancer therapeutics portfolio. Despite no major upcoming catalyst date, I decided to take a closer look when I read the company is using variations of mustard gas and arsenic to treat cancer. The stock has risen 50% over the past 6 months, culminating in an agreement with RJ Kirk’s Intrexon and a positive write up in Forbes. ZIOP’s portfolio is based off one very simple (and powerful) idea: improve the side effect profile of current treatments. By targeting pharmaceuticals with known cancer-killing properties and horrendous side effects, ZIOP aims to synthesize modified versions which maintain the potency and reduce these side effects. Currently in phase III trials for the lead indication of advance stages of soft tissue sarcoma (PICASSO 3), the lead compound palifosfamide is the active metabolite of the drug ifosfamide. Ifosfamide itself is a prodrug (and is a member of the broader class of DNA-alkylating cancer drugs), and is metabolized into many different components including acrolein and chloroacetaldehyde, both highly toxic. By removing these unneeded compounds, the drug regimen should be better tolerated. The clinical data has validated this notion; the phase II trials showed median progression free survival (FPS, the primary endpoint of the study, and also the primary endpoint for accelerated approval for the current phase III trial) of 7.8 months in combination with Doxorubicin vs. 4.4 months with Doxorubicin itself, a statistically significant improvement of 3.4 months. As with other drugs of this class, the drug is administered intravenously, although an oral formulation is entering phase I trials. Based on the similarity of the phase III trial design with the successful phase II trial, it appears likely that the phase III trial will prove successful, although accelerated approval is by no means certain. Furthermore, ZIOP has received Orphan Drug status in the US and Europe for palifosfamide.Complete Story »
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