AVEO Pharmaceuticals, Inc. (NASDAQ: AVEO) is having a relatively strong start to the trading session this morning, and for good reason. The company announced that it has received a positive recommendation from NICE in the United Kingdom. Of course, this led to excitement among investors who are pushing the stock toward the top. Today, we’ll talk about the recommendation, what we’re seeing from the stock, and what we’ll be watching for with regard to AVEO ahead.
AVEO Gains On Positive NICE Recommendation
As mentioned above, AVEO Pharmaceuticals is having a strong start to the trading session this morning. The gains come after the company issued a press release announcing that the United Kingdom’s National Institute for Health and Care Excellence, also known as NICE, has published a Final Appraisal Determination (FAD). In the FAD, NICE recommended FOTIVDA (tivozanib) for the first in line treatment of adult patients with renal cell carcinoma, also known as aRCC.
In the release, AVEO also reminded investors that in the European Union, Norway and Iceland, tivozanib is indicated as the first line treatment for adult payments with aRCC as well as for adult patients who are vascular endothelial growth factor receptor (VEGFR) and mTOR pathway inhibitor-naive following disease progression after one prior treatment with cytokine therapy for aRCC.
As a result of this recommendation, AVEO is going to receive new funding. Under an agreement with EUSA Pharma, the licensee of tivozanib in Europe, North and South Africa, Latin America and Australasia, EUSA Pharma will pay $2 million in triggered milestone payments to the company, thanks to the recommendation. In a statement, Michael BAiley, president and CEO at AVEO, had the following to offer:
The recommendation from NICE marks the first European Union reimbursement approval for FOTIVDA, helping ensure broadening patient access to FOTIVDA in key European markets following its launch in Germany in the fall of 2017… This recommendation underscores the strength and commercial-stage value of our partnership with EUSA Pharma, and triggers a $2 million milestone payment to AVEO. We continue to execute on our strategic plans, and we have had a very productive 2018 thus far, with the recent presentation of positive preliminary data from our tivozanib and nivolumab combination TiNivo study in RCC and an investigator sponsored study of tivozanib in liver cancer. We look forward to several potential additional key milestones in 2018, including further EU reimbursement decisions as well as topline data in the second quarter from our Phase 3 TIVO-3 study.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news released by AVEO Pharmaceuticals proved to be overwhelmingly positive. Not only is the company’s treatment going to see reimbursement coverage, the coverage triggers $2 million in funding that doesn’t dilute the stock. All in all, this is great news. So, it’s no surprise to see the stock making a run for the top. At the moment (8:45), AVEO is trading at $3.15 per share after a gain of $0.10 per share or 3.28% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AVEO. In particular, we’re interested in following the story surrounding the ongoing commercialization of FOTIVDA as well as the continued progress with regard to the development of the tivozanib and nivolumab combination. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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