Leerink Partners Starts Cardiome Pharma (CRME) at Outperform

Leerink Partners initiates coverage on Cardiome Pharma (NASDAQ: CRME) with a Outperform rating and a price target of $4.75.

Analyst Jason Gerberry commented, "We are initiating coverage of CRME with an OP-rating based on the company’s ability to drive meaningful operating and financial leverage through the launch of several new products. Cardiome operates as an ex-US specialty pharmaceutical company focusing on the sale of hospital-based products. The company has a stable base business generating ~$25m in sales and an underutilized sales force that should benefit from the roll-out of Xydalba for complicated skin infections and subsequent launch of Trevyent for PAH in 2018. While we aren't overly bullish on the Xydalba launch relative to what's implied
by consensus ests we still believe the drug can achieve ~$40m in peak sales in Cardiome's markets & we view the asset as key to unlocking the value of $300m in tax NOLs (net operating loss), which can either be leveraged by Cardiome or could travel in a takeout scenario. We value CRME shares at $4.75 based on our DCF that assumes a 15% discount rate to reflect the commercial risks associated with the business model."

For an analyst ratings summary and ratings history on Cardiome Pharma click here. For more ratings news on Cardiome Pharma click here.

Shares of Cardiome Pharma closed at $2.65 yesterday.

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