Cancer treatment business Sirtex Medical Limited (ASX: SRX) this morning revealed more detail on the outcome of its SIRFLOX trial and what it may mean for the future sales of its SIR-Spheres product.
The stock price has been on a wild ride for much of the past year and even collapsed in half as recently as March as the science behind the SIRFLOX study results left many investors confused over the underlying potential of the business.
Some in the market wrongly concluded that the initial announcement meant the business had no realistic chance of promoting its SIR-Spheres treatment as a first line therapy, although the company is now arguing otherwise with the clinical data to support its case.
It's no surprise Sirtex is keen to promote the results in the best light possible, although the credibility of its clinical evidence is not in question. The business is arguing that the SIR-Spheres treatment improves median progression free survival in the liver in patients with liver dominant metastases as part of their metastatic colorectal cancer (mCRC).
Given the evidence presented the question investors need to ask themselves is what is the probability that the global community of oncologists will start to use the treatment on a first line basis?
In my opinion the chances are reasonably good, although the company itself acknowledges this may take time. However, the key takeaway appears positive and the company also has two other clinical trials in progress named FOXFIRE and FOXFIRE GLOBAL, which are designed to assess the overall survival benefits of the SIR-Spheres treatment in patients with mCRC.
The combined results are expected in 2017 and may prove another leap forward in the company's evolution.
Growth of the SIR-Spheres treatment in the salvage setting continues to grow strongly around the world, with the company recently reporting sales were up 22% for the first 10 months of the financial year compared to the prior corresponding period.
I remain bullish on the stock and it is expected to come flying out of the blocks this morning although its potential is no secret anymore. If you want to make the eye-watering gains as an investor you need to find the Sirtex of tomorrow not today.
Indeed I personally have been buying one of these tech stocks as its growth into the US market makes it a tantalising prospect and I expect it will deliver some huge returns in the years ahead…
