OncoGenex price target upped 54%

Dundee Securities has raised its 12-month price target on OncoGenex Pharmaceuticals (NASDAQ:OGXI) to $40 (U.S.) from $26 based on an updated enterprise value analysis for comparable post-Phase 2 oncology companies.

Analyst David Martin says OncoGenex stands a “fairly good chance” of signing a partnership near-term in the range of recent transactions, with a $60-million upfront payment and total future payments of $400-million or higher.

He figures a strong partnership in the relative near-term could boost the stock price to the $70-range, giving the company a market capitalization of $422-million. The downside, if a partnership is not signed within a reasonable timeframe, could be to the $10-range, he adds.

The stock is trading at $30.69 on Thursday morning.