Epizyme – The dark side of the biotech IPO bubble

On a standalone basis, phase I results presented by Epizyme (EPZM) for its lead program, EPZ-5676, were not as negative as market reaction implies. The company was able to dose escalate through several cohorts without serious side effects, demonstrate target modulation in humans and show mild signs of efficacy. For a typical biotech company, that would be considered a reasonable phase I data package, given the possibility to explore higher potentially more efficacious doses. Unfortunately, an early stage biotech company with a market cap of ~$1B based purely on preclinical results and hype is anything but typical. Continue reading