YM BioSciences - to partner or not to partner?

Canadian firm biotechnology firm YM BioSciences’ (TSX: YM) conundrum of whether to partner or go it alone with a pivotal Phase III program for CYT387 is close to resolution, according to analysts at Edison Equity Research.

While a partnership would likely catalyse the stock near term, the analysts also believe greater long-term value could be delivered by YM using its cash of C$125.5 million ($125.7 million) to fund the required trials in myeloproliferative disorders before securing a deal on more lucrative terms. “We are therefore focused on the JAK1/2 inhibitor progressing into pivotal trials to determine the efficacy and safety profile, which Phase I/II study data indicates will be competitive against Jakafi, the first JAK inhibitor to gain FDA and EU approval in this setting,” they say.

Merits in both

Since reporting highly encouraging data for CYT387 from a 166-patient Phase I/II myelofibrosis study at ASCO 2011 and ASH 2011, YM has been weighing up the relative merits of securing a partner or advancing the drug into pivotal trials on its own. With C$125.5 million in cash as of September 30, 2012, YM is not under pressure to strike a deal on any terms, although the analysts do expect a decision either way in fourth-quarter 2012 or first-half 2013.