Momentum To Continue On SNSS; Investor Day Tomorrow, Analysts Raising Target

By David Moskowitz

Sunesis Pharmaceuticals (NASDAQ:SNSS) has had a great year thus far, up 350% since January, and importantly, the smart money continues to flock to the name. The key driver is the company’s development-stage asset, vosaroxin, a potential cancer treatment with a unique mechanism of action. The compound is being studied in multiple cancer indications, however, the focus is on the VALOR trial, which is evaluating the therapy in patients with acute myeloid leukemia (AML) that have had a first relapse or are refractory to conventional therapy (inability to obtain a complete response). Notably, AML remains an unmet need with no new therapies approved for the disease in several decades. As a result, analysts estimate that vosaroxin has potential to achieve peak sales in the $500 million range.