Rosetta Genomics announced today that its collaboration with the New York University School of Medicine has now been expanded to include cardiovascular indications. At investment bank Collins Stewart, analysts believe that the agreement allows the biotech firm to diversify away from just oncology and into the cardiology testing field as well. Andrew Fein, a biotechnology analyst with Collins Stewart, notes that "collaboration with NYU not only lends validity to Rosetta's microRNA diagnostics program, but it also allows the company to have access to key leaders in the fields of melanoma and now cardiology. Rosetta, supplying its proprietary protocols and technologies, can now employ these protocols and technologies more effectively with the help of NYU."
"It is now clear that microRNAs play a key role in controlling diverse aspects of cardiac development and response to disease," noted Dr. David B. Meyer, Director of Pediatric and Congenital Cardiothoracic Surgery, at NYU School of Medicine. "Rosetta Genomics' extensive knowledge and proprietary technologies in the microRNA field, coupled with our experience in congenital heart defects, is an excellent starting point for this collaboration."
Fein points out that the company's technology and research may be especially suited to cardiovascular evaluations. "While the original purpose of the collaboration, which was announced in September, was to identify microRNA profiles to develop a diagnostic test for melanoma, the collaboration will now also aim to identify microRNA biomarkers and drug targets for congenital heart defects. The ultimate goal for this collaboration is to enable physicians to screen newborns for heart defects that may not otherwise manifest themselves until years later in a child’s life. With recent studies suggesting that microRNAs play an important role in many aspects of heart development, we believe this is a logical move for Rosetta.
Collins Stewart adds that "In addition to securing this validating collaboration with NYU School of Medicine, Rosetta Genomics is on schedule to three diagnostic products in 2008. The first of these diagnostic tests will be used to differentiate between squamous and non-squamous lung cancer, the second product will aid physicians in distinguishing between mesothelioma and adenocarcinoma, and the firm's CUP assay, now in its final stages of development, is expected to allow physicians to identify the primary origin of a patient’s metastases and then treat that patient with the appropriate therapeutics, possibly improving survival time."
"Overall, we believe these non-invasive tools will prove to be extremely useful in the clinic. We expect the launching of these products, in addition to data released on the progress of the NYU collaboration will validate Rosetta Genomics’ product platform and will continue to drive value for the company."
Collins Stewart rates the company a "Buy" with a price target of $10.
Rosetta closed on Tuesday at $5.96, reflecting a market cap of $70.7 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 21, 2007
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