$AVEO Analyst Blog

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AVEO Upgraded to Strong Buy, Add to Your Portfolio – Analyst Blog

On Apr 14, Zacks Investment Research upgradedAVEO Pharmaceuticals, Inc. AVEO to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

AVEO put up a standard performance in 2014, delivering positive earnings surprises in three of the last four quarters with an average beat of 17.85%.

As part of its restructuring plan announced in Jan 2015, AVEO has undertaken an initiative which should reduce its annual compensation expenses by about $6 million and facilities requirements by more than 80%. The company intends to invest more in evaluating strategies and partnerships to advance its pipeline through external resources and expertise.

AVEO does not have any marketed products in its portfolio and earns revenues from collaborations. 2014 collaboration revenues amounted to $18.1 million as compared to $1.3 million in the year-ago period.

AVEO is also working on advancing its pipeline. The company entered into an agreement with Ophthotech Corp. OPHT for lead candidate tivozanib. Under this deal, Ophthotech will evaluate tivozanib for the treatment of non-oncologic diseases of the eye outside Asia.

Meanwhile, based on results from a predefined biomarker analysis of the randomized phase II BATON-CRC study on tivozanib for the first line treatment of metastatic colorectal cancer, AVEO intends to discuss the next stage of development with the FDA. The company is seeking partnership opportunities for tivozanib for colorectal cancer treatment.

Additionally, the company is working on submitting a regulatory application for tivozanib in the EU for the treatment of renal cell carcinoma where it enjoys orphan drug status.

Apart from tivozanib, AVEO has several other candidates in its pipeline including ficlatuzumab (cancer) and AV-203 (phase I completed – solid tumors) among others.

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