Developing drugs to stop the signals that lead to tumor cell growth. Onconova has two drugs in clinical testing, ON 123300 and rigosertib, which target pathways between the cell surface and DNA transcription. These drugs are in clinical trials for both cancers affecting large populations and an orphan tumor. We are maintaining our Outperform rating with a split-adjusted price target of $11 per share.Clinical trials are progressing. ON 123300 is a multi-kinase inhibitor in development to stop signals in the cell nucleus that lead to cancer cell proliferation. A Phase 1 dose-escalation trial has opened in the US, and a trial in China has dosed its third cohort. Selection of dosing for a Phase 2 clinical trial is expected in 2H21.Immune stimulation could improve checkpoint inhibitor responses. Rigosertib acts to inhibit RAS, a control-point in a pathway that leads to cell proliferation. It has also been shown to stimulate increased numbers of immune cells in the tumors. A Phase 1 trial has begun testing rigosertib combination with Opdivo (nivolumab) to improve response rates and efficacy in lung cancer. Separately, it is in a Phase 2 trial for squamous cell carcinoma that develops in patients with a rare disease, Recessive Dystrophic Epidermolysis Bullosa, RDEB.Financial Status. At the close of 1Q21 on March 31, 2021, Onconova reported cash of $48.0 million. We estimate this is sufficient to fund clinical trials and report data milestone through 2H22. In May 2021, the company completed 1-for-15 reverse split, reducing its share count to 15.8 million from 236.7 million. This maintains compliance with exchange listing requirements for Nasdaq. Conclusion: Onconova has cash on hand to fund operations through several upcoming milestones. In the next several months, patient dosing in the ON 123300 trial is expected to begin. This data, along with the ON 123300 trial in China, will be used to select dosing for the Phase 2. The rigosertib trial in combination with nivolumab in KRAS+ non-small cell lung cancer has begun, with data for Phase 2 dosing expected later this year. Our price target is $11 per share. Read More >>