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Leerink Swann on DUSA Pharmaceuticals (DUSA): An Unusual Small Cap Opportunity; Steady, Profitable Growth in a Large Market

January 11, 2012 7:21 AM EST
DUSA Hot Sheet
Rating Summary:
    2 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Leerink Swann initiates coverage on DUSA Pharmaceuticals (NASDAQ: DUSA) with an Outperform. PT $8.00.

Leerink analyst says, "Positives include: 1) forecasted double-digit sales growth thru '15E as growth of PDT for AK treatment is still in early stages; 2) improved attractiveness to physicians as PDT reimbursement has increased +245% since '04; 3) management's re-focused efforts on the U.S. mkt; 4) potential label improvements driven by 2012 data catalysts designed to simplify and enhance uptake; and 5) scarcity value of small US specialty dermatology company."

"The main investment risks are:1) ability to achieve our revenue forecasts due to competition; 2) visibility on changes to reimbursement ; 3) risk of generic substitution post 2013 when the initial PDT platform patent expires."

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

Shares of DUSA Pharmaceuticals closed at $4.48 yesterday, with a 52 week range of $2.47-$6.83.


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