Collins Stewart: Palifosfamide P2 OS Data Bodes Well for P3

According to a research report published today by Collins Stewart, Ziopharm Oncology's (NASDAQ: ZIOP) palifosfamide endured a positive interim OS trend.

Collins Stewart reported, “Final OS data is expected at a medical meeting in 2H12. While we continue to believe the ongoing P3 PICASSO-3 study has a high likelihood of hitting its PFS co-primary endpoint in 2H12, given positive P2 PFS data (trial stopped early on a 3.4 month PFS benefit), we now have increased confidence on the OS co-primary endpoint (expected in ~2015; however, PFS will support accelerated approval in ~2014) following today's data, particularly since the P2 study was not powered to demonstrate an OS benefit. We believe palifosfamide in mSTS represents a peak U.S./E.U. opportunity of $300M+ in 2019 and look for ZIOP shares to trade higher into P3 PICASSO-3 data in 2H12.”

Collins Stewart maintains its Buy rating and $9 PT on Ziopharm Oncology, which closed Friday at $5.28.