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Gabelli & Co. Initiates Coverage on CPEX Pharmaceuticals (CPEX) with a Buy

February 11, 2009 11:03 AM EST
CPEX Hot Sheet
Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Gabelli & Co. initiates coverage on CPEX Pharmaceuticals, Inc (Nasdaq: CPEX) with a Buy. Price target $17.

Gabelli analyst says, "The market appears to be valuing CPEX Pharmaceuticals based on the company's nasal insulin product, Nasulin; we feel that this does not adequately reflect the value of the company's Testim royalty stream - we expect that the Paragraph IV generic drug filing against Testim and the increased R&D expenses to support Nasulin will continue to be a drag on the stock, however several catalysts could emerge over the next 12-18 months: settlement with Upsher-Smith, early termination/partnering of Nauslin, success of MannKind's Technosphere Insulin, new partnership opportunities, and the possibility of acquisition."

CPEX Pharmaceuticals, Inc. is a specialty pharmaceutical company.

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