Seeking Alpha: Cancer Risks May Delay, But Shouldn't Derail, The Gattex Train

In the “shoot-first analyze later” world of biotechnology, NPS Pharmaceuticals (NPSP) is getting shot up on potentially scary safety data about the company's late-stage GI drug Gattex (teduglutide). Although investors should not blithely dismiss the risk that this data could knock NPSP off track, the recent sharp sell-off looks harsh relative to the data available and the prospects of the company's pipeline.

Will Cancer Haunt Gattex?
NPS Pharmaceuticals released new data on Halloween from the company's Phase 3 STEPS 2 study of Gattex in short bowel syndrome. Much of the data was consistent with prior studies – Gattex significantly reduces the amount of parenteral and IV nutrition relative to placebo, and a large number of recipients respond.
The adverse effects part of the data is where the warning sirens went off. Tolerability could be an issue, as some patients elected to discontinue because of GI side-effects (though it should be noted that a large number of patients in the first STEPS trial elected to continue on).

Read the full article at Seeking Alpha:
Cancer Risks May Delay, But Shouldn't Derail, The Gattex Train