Poniard Pharmaceuticals Inc. (NASDAQ: PARD)

Poniard Pharmaceuticals Inc. (PARD) is a biopharmaceutical company focused on the development and commercialization of cancer therapy products. Its lead product candidate is picoplatin, a platinum-based cancer therapy. An intravenous chemotherapeutic agent, picoplatin is designed to overcome platinum resistance in the treatment of solid tumors. The Company initiated a phase III SPEAR (Study of Picoplatin Efficacy After Relapse) trial of picoplatin in small cell lung cancer. The Company is also conducting separate phase I/II studies of picoplatin in the treatment of patients with metastatic colorectal cancer and hormone-refractory prostate cancer. The company was formerly known as NeoRx Corporation and changed its name to Poniard Pharmaceuticals Inc. in June 2006. NeoRx Manufacturing Group Inc. is a wholly owned subsidiary of the Company.

Poniard Pharmaceuticals was founded in 1984 and is headquartered in South San Francisco, California.

Source: Reuters.com, SEC Filings.

Financial Summary

The Company reported a net loss of $9.9 million ($0.29 diluted loss per share on a loss applicable to common shares of $10.0 million) for the quarter ended September 30, 2009, compared with a net loss of $12.2 million ($0.36 diluted loss per share on a loss applicable to common shares of $12.4 million) for the quarter ended September 30, 2008. The Company reported a net loss of $32.5 million ($0.95 diluted loss per share on a loss applicable to common shares of $32.9 million) for the nine months ended September 30, 2009, compared with a net loss of $34.6 million ($1.01 diluted loss per share on a loss applicable to common shares of $35.0 million) for the same period in 2008.

Total operating expenses for the quarter ended September 30, 2009, were $9.2 million compared with $12.4 million for the quarter ended September 30, 2008, and were $30.5 million for the nine months ended September 30, 2009, compared with $35.8 million for the same period in 2008. Total operating expenses for the nine months ended September 30, 2009, include a charge of $1.1 million for the restructuring and related asset impairment resulting from the Company’s implementation of a strategic restructuring plan to discontinue its in-house preclinical research operations and reduce its workforce by approximately 12% effective March 31, 2009.

Research and development expenses were $5.4 million for the quarter ended September 30, 2009, compared with $9.0 million for the quarter ended September 30, 2008. Research and development expenses were $19.2 million for the nine months ended September 30, 2009, compared with $24.5 million for the same period in 2008.

General and administrative expenses were $3.8 million for the quarter ended September 30, 2009, compared with $3.4 million for the quarter ended September 30, 2008. General and administrative expenses were $10.3 million for the nine months ended September 30, 2009, compared with $11.3 million for the same period in 2008.

Cash and investment securities as of September 30, 2009, were $40.1 million, compared with $72.8 million at December 31, 2008. The Company believes that its existing cash and investment securities will provide adequate resources to fund the Company’s operations at least into the first quarter of 2010.

Source: Reuters.com, SEC Filings.

Analyst Consensus

This is the consensus forecast amongst 11 polled investment analysts. Against the Poniard Pharmaecuticals Inc. company.

The 8 analysts offering 12-month price targets for PARD have a median target of 11.50, with a high estimate of 15.00 and a low estimate of 10.00. The median estimate represents a 51.72% increase from the last price of 7.58.

Source: www.ft.com

Source: http://www.reuters.com/finance/stocks/estimates?symbol=PARD.W

Investment Highlights

PARD today announced that its pivotal phase III SPEAR (Study of Picoplatin Efficacy After Relapse) trial of picoplatin in the second-line treatment of small cell lung cancer (SCLC) did not meet its primary endpoint of overall survival. The analysis, based on 320 evaluable events (patient deaths), showed a hazard ratio of 0.82 with a p value of 0.089.

“We are disappointed that the trial did not meet the primary endpoint. The data indicates that more patients on the best supportive care arm received chemotherapy following progression than those on the picoplatin arm, and we believe that this may have been a significant factor contributing to the trial outcome, as picoplatin appeared to demonstrate a trend toward a survival advantage. Based on these findings and other analyses, we are contacting the FDA today to request a meeting to discuss a regulatory path forward. We look forward to presenting the full SPEAR efficacy and safety data at an upcoming medical conference early next year,” said Jerry McMahon, Ph.D., chairman and CEO of PARD.

Source: http://www.poniard.com/

Technical Analysis

PARD’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility. Additionally, PARD is trading below its lower Bollinger Band. Relative to recent price action, the stock is currently overextended to the downside and due for either a pause or retracement.

The MACD for PARD currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

Source: Yahoo Finance

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