While some investors are focused on the potential for a cut in the Reserve Bank's cash rate today others are looking for quality companies with potential to increase their market value by large amounts in the year ahead.
One such candidate is Sirtex Medical Limited (ASX: SRX) which is an innovative cancer treatment business that has recently provided more details as to exactly when it will release the initial data from its SIRFLOX clinical trial.
The basic primary endpoint of the SIRFLOX trial is to demonstrate that the treatment provided gives patients a longer progression free survival time period than they would have without the treatment.
The company expects to announce whether or not the primary endpoint has been met when it announces the results.
D-Day
The company said the following in relation to the expected date. The SIRFLOX study has now finished and a final reconciliation of the study database has commenced. That reconciliation involves an initial analysis of the study background and the safety data, and an ongoing verification of the data.
It is expected that this process will be completed by mid March 2015, and that the database for the SIRFLOX study will be complete and finally locked on that date.
Once the database has been locked, the data will be analysed to establish whether the primary endpoint of the SIRFLOX study has been reached.
It is presently anticipated that this will take up to 7 days and will be completed in around the third week of March 2015. At that time the company expects to make an announcement to the market as to whether the primary endpoint is "believed to have been reached".
Blockbuster returns?
If the company announces that the primary endpoint has been met the market is likely to receive the news well given what it potentially means for future sales of the product and the likelihood of success in other clinical trials being conducted.
Sirtex is also undertaking its FOXFIRE and Sarah studies which have primary endpoints of overall survival, which is essentially a measure of the treatment's effectiveness in the duration of survival.
However, all eyes are on SIRFLOX for now and if successful the company expects it to have a "material change" on its business, which could mean its market value starts to catch up with private healthcare giants like Cochlear Limited (ASX: COH) or Sonic Health Care Limited (ASX: SHL).
For investors the prudent approach is to watch this story from the sidelines given the downside risk if the trial data disappoints. However, those happy to take on more risk in search of big returns may be tempted by the current price around $33.54 a share.
Sirtex looks an exciting prospect, but the key to out-sized returns is finding the Sirtex of tomorrow not today! In fact The Motley Fool knows 3 dividend payers that are on far more attractive valuations with the prospect of generous returns..
