AVEO Stock: Up on Collaboration With BMY

AVEO Oncology (NASDAQ: AVEO) recently announced the FDA approval of FOTIVDA. So, the stock has been on the radar of several investors are commercialization will commence in the next couple of months. 

Now, the company is looking to take the treatment another step forward, with an announcement this morning that it has entered into a collaboration with Bristol Myers Squibb (NYSE: BMY), sending the stock for another day in the green. 

Here’s what’s happening:

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AVEO Oncology Announces Bristol Myers Squibb Collaboration

As mentioned above, shortly after announcing the FDA approval and coming launch of FOTIVDA, AVEO Oncology is looking to take the treatment to the next level, announcing a collaboration with Bristol Myers Squibb. 

According to the press release, the collaboration surrounds FOTIVDA, in combination with OPDIVO, as a potential treatment option for patients with advanced relapsed or refractory renal cell carcinoma, or RCC.

The two will launch a pivotal Phase 3 trial known as TiNivo-2. If all goes well with this trial, the collaboration will lead to yet another NDA with the FDA, expanding the potential for FOTIVDA to become a blockbuster therapy and AVEO stock to skyrocket ahead.  

In the release, the company said that the trial is expected to enroll 326 patients with advanced RCC who have progressed following prior immunotherapy treatment. Patients will be randomized to receive either FOTIVDA in combination with OPDIVO, or FOTIVDA alone. 

The goal of the study is to assess progression free survival. Key secondary endpoints include overall survival, overall response rate, safety, and duration of response. 

Management Commentary

In a statement, Toni Choueiri, M.D., Director at the Lank Center for Genitourinary Oncology, Director at the Kidney Cancer Center, and Professor of Medicine, at the Harvard Medical School, had the following to offer:

With the recent U.S. FDA approval of FOTIVDA in the relapsed/refractory RCC setting, I look forward to further exploring FOTIVDA’s immunomodulatory effects and differentiated tolerability profile in combination with OPDIVO. 

This combination was first explored in the Phase 1/2 TiNivo study, where it demonstrated favorable tolerability and prolonged PFS using the combination of FOTIVDA and OPDIVO in both treatment naïve and previously treated patients with advanced RCC. The TiNivo-2 Phase 3 study is expected to further our understanding of the activity and tolerability of this combination following prior immunotherapy.

The above statement was followed up by Michael BAiley, President and CEO at AVEO. Here’s what he had to offer:

The advanced RCC treatment landscape has seen significant benefit from the introduction of immunotherapy-VEGF TKI combinations in earlier-line treatment, and we believe that this benefit could extend to the relapsed/refractory setting with an effective, well-tolerated combination. 

On the heels of the recent U.S. FDA approval of FOTIVDA as monotherapy for the treatment of adult patients with relapsed or refractory advanced RCC following two or more prior systemic therapies, we are keenly interested in exploring its full potential in the combination setting. Working with our clinical collaborators and Bristol Myers Squibb, our goal is to advance this trial as expeditiously as possible.

Commercialization Comes Soon

As mentioned above, AVEO recently announced the approval of FOTIVDA by the FDA for patients with renal cell carcinoma that have tried multiple therapies, but failed to realize a positive outcome. 

That’s huge news as this means that the company will have the ability to tap into a multi-billion dollar market. In fact, it plans to do so in the coming months. 

With this commercialization on the horizon, the company is moving from clinical stages to commercial stages, and revenue will hit the books before the end of the year. As a result, there’s a potentially significant opportunity here, especially as AVEO works to expand the potential of FOTIVDA with collaborations like the one with BMY that was announced today. 

What Analysts Think About AVEO Stock

Analysts are in love with AVEO stock. In fact, according to TipRanks, four analysts are covering the stock at the moment, all of whom rate it a Buy. 

Price targets on the stock range from $18 to $27, with the median price target of $22.75. The median target represents the potential for more than 90% gains when compared to the company’s closing price yesterday. 

Keep in mind, it’s never a good idea to blindly follow the opinions of Wall Street Analysts. Nonetheless, these opinions are a great way to validate your own research, and they suggest that AVEO stock is one for the books.  

Final Thoughts

The fact that AVEO is going commercial is exciting as it stands. However, the company continues to work to expand its offering, making it even more exciting. 

All told, if you’re not paying attention to AVEO stock yet, you’re missing out! 

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