OncoMed (OMED) Target Lifted to $46 at Jefferies after Celgene Deal

December 4, 2013 7:55 AM EST
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Price: $7.67 -1.16%

Rating Summary:
    8 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Jefferies analyst Thomas Wei reiterated a Buy rating and boosted its price target on OncoMed Pharmaceuticals (NASDAQ: OMED) from $27 to $46 following the company's collaboration with Celgene (NASDAQ: CELG) which validates the company's platform and pipeline.

"We are positive on the CELG deal, which provides validation demcizumab and its cancer stem cell platform," Wei said. "Further, this deal relieves OMED of any near-term financing risk with a large upfront payment (the cash component of which is ~$5/share in equity value). We remain positive on OMED’s prospects with potentially 11 Phase 2 readouts by 2016 that could be funded with pro forma cash ($322m) and anticipated milestones."

The firm raised FY 2013 EPS from ($1.04) to ($0.84) and FY 2014 EPS from ($1.48) to $0.65.

For an analyst ratings summary and ratings history on OncoMed Pharmaceuticals click here. For more ratings news on OncoMed Pharmaceuticals click here.

Shares of OncoMed Pharmaceuticals closed at $27.70 yesterday.

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