Piper Jaffray Upgrades Anadys Pharmaceuticals (ANDS) to Overweight

November 3, 2009 7:34 AM EST

Piper Jaffray & Co. upgrades Anadys Pharmaceuticals (Nasdaq: ANDS) from Neutral to Overweight. Price target $2.50.

Piper analyst says, "Early safety data and 4-week rapid viral response (RVR) rates are expected by year-end. Further data including 12-week early viral response (EVR) and the more critical safety assessment is expected to be reported in 1H:10. We are optimistic that 200mg BID ANA598 will show potent anti-viral activity without inducing rash leading to new partnering discussions. With positive 4-week efficacy data and a clean safety profile, Anadys should be able to get suitors back to the table for a partnership next year.

"We are upgrading to Overweight based on a projected enterprise value of $113 million (up from $94 million) by applying the same 5x multiple to 2015 projected ANA598 sales of $156 million discounted back at 50%. To this we add $10 million for ANA773 and YE:10E net cash...Risks include developmental, clinical, and regulatory. ANA598 may fail in clinical trials. Anadys may not enter new collaborations. The company could face unforeseen litigation and will need to raise additional capital this year."

To see more analyst ratings on ANDS Click Here.

Anadys Pharmaceuticals, Inc., a biopharmaceutical company, engages in developing medicines in the areas of hepatitis C and oncology.

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