Liver cancer treatment specialist Sirtex Medical Limited (ASX: SRX) is on the ASX leaderboard again this morning after updating the market with more data on its recent SIRFLOX trial.
The stock has gained 5.8% to $30.75 after the company revealed sub-group analysis from the SIRFLOX trial which supports the evidence around the benefits of its SIR-Spheres treatment for liver-only and liver-dominant patients in first-line metastatic colorectal cancer.
While much of the focus has been on the company's growth into the US market the business has also made significant inroads in Europe in promoting its product and will present some SIRFLOX trial findings at the European Society of Medical Oncology between July 1-4.
Recently, much of the science behind the business and potential of future clinical trial data to translate into sales growth has flummoxed an analyst community struggling to value the business. Selling for $30 the stock trades on around 45x analysts' estimates for earnings per share in the financial year that ended June 30, 2015.
However, it's the future sales trajectory of its SIR-Spheres treatment that has the potential to post big profit increases and share price gains.
The presentation of more positive data to the leading event in European oncology research looks another step forward for the business in promoting the benefits of its SIR-Spheres treatment to the global community of medical oncologists.
In my opinion the stock has probably found about a fair value given its hard to quantify outlook. Investors chasing extra-large returns really need to find the Sirtex of tomorrow not today!
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