Friday, September 22, 2006

Calls of Note Part 4

Cowen notes that last night competitors of Dyax (NASDAQ:DYAX), Jerini and Kos announced mixed results from 2 Phase 3 trials of Icatibant in HAE. While one of the trials succeeded, the other missed its primary endpoint. The FDA has been pretty clear that Dyax and Genzyme need to submit two randomized, positive, blinded Phase III studies for DX-88. Should the same standard apply to Icatibant, Jerini and Kos would need to conduct another trial, presumably pushing out Icatibant's launch to H2:08, in line with DX-88's timing. Although this is not assured - Kos and Jerini continue to expect to file for U.S. and EU approval by YE:06 - last night's news is a positive for Dyax. With a <$100MM enterprise value and a product that has solid
proof-of-concept data, firm believes that downside to DYAX is limited and that the stock is positioned to outperform over the next 12-18 months as DX-88 makes progress in completing its clinical trial program.

Notablecalls: May see mild interest in DYAX today, but wouldn't count on it. Rather take it as an educational note in case of further news from Jerini/KOSP.

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