A Hold recommendation which was issued earlier to healthcare company CombinatoRx, Inc. (CRXX) by has been maintained Zacks senior pharmaceutical analyst Jason Napodano, CFA. Here's what he said in his latest update:
'CombinatoRx is engaged in the discovery, development, and commercialization of novel therapeutics that are combinations of approved drugs. CombinatoRx has identified seven product candidates which target multiple diseases like immuno-inflammatory diseases, chronic pain, topical dermatoses, metabolic disease and oncology.
'We expect significant news flow on the pipeline candidates in 2007 and 2008. At this time we would like to see more clinical data before recommending the name. The stock may offer an attractive investment opportunity once CRx-102, the lead candidate, moves into phase III trials and the other candidates move forward. The company uses its proprietary combination high throughput screening (cHTS) technology for the identification of novel drug candidates.
'So far, seven candidates are in clinical development. Most of these candidates are in phase II trials or are scheduled to enter into phase II trials sometime during the year. We are pleased with the progress the company has made with its pipeline.
'The company's most advanced candidate is CRx-102, which is being studied for the treatment of rheumatoid arthritis and osteoarthritis of the knee. We believe CombinatoRx will focus its efforts on advancing its pipeline in 2007. Once the data starts flowing in, we expect the company to become more active on the partnership front. CombinatoRx is likely to enter into collaborative agreements with pharmaceutical and biotechnology companies to support the full development and commercialization of selected product candidates.
'This will help CombinatoRx obtain access to additional development, commercial or financial resources or a large sales force. We expect to hear announcements regarding partnership deals in 2008. We have yet to see phase III data on any of the candidates. The stock may offer an attractive investment opportunity once CRx-102 moves into phase III trials and the other candidates move forward. We rate the stock a Hold with a $6 price target.'
Read the full analyst report on CRXX.
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