Needham & Company Reiterates a 'Buy' on NPS Pharmaceuticals (NPSP); Shares Undervalued
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Price: $45.97 --0%
Rating Summary:
8 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
8 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Needham & Company reiterates a 'Buy' on NPS Pharmaceuticals Inc. (NASDAQ: NPSP) price target of $15.00.
Needham analyst says, "NPSP submitted an NDA for Gattex in Short Bowel Syndrome (SBS) in December 2011. We expect a 6-month priority review and are inclined towards a positive outcome, with launch following in 2H12. The company announced impressive Phase 3 results early in 2011, but we note that regulatory risk is moderately elevated given that three cancer cases were later reported. Although two were judged unrelated to drug and a third patient should not have been enrolled in the trial, the events are likely to be scrutinized by the FDA and an FDA Advisory Committee. Overall, we believe the unmet need in SBS carries more weight in a risk/benefit analysis."
"We believe the stock is undervalued ($370M EV) and reiterate our rating and price target. Positive results from the Phase 3 NPS558 trial in hypoparathyroidism in 2011 add critical depth to the pipeline. Furthermore, the Sensipar royalty stream is expected to revert to NPS in mid-2013."
For an analyst ratings summary and ratings history on NPS Pharmaceuticals Inc. click here. For more ratings news on NPS Pharmaceuticals Inc. click here.
Shares of NPS Pharmaceuticals Inc. closed at $6.52 yesterday.
Needham analyst says, "NPSP submitted an NDA for Gattex in Short Bowel Syndrome (SBS) in December 2011. We expect a 6-month priority review and are inclined towards a positive outcome, with launch following in 2H12. The company announced impressive Phase 3 results early in 2011, but we note that regulatory risk is moderately elevated given that three cancer cases were later reported. Although two were judged unrelated to drug and a third patient should not have been enrolled in the trial, the events are likely to be scrutinized by the FDA and an FDA Advisory Committee. Overall, we believe the unmet need in SBS carries more weight in a risk/benefit analysis."
"We believe the stock is undervalued ($370M EV) and reiterate our rating and price target. Positive results from the Phase 3 NPS558 trial in hypoparathyroidism in 2011 add critical depth to the pipeline. Furthermore, the Sensipar royalty stream is expected to revert to NPS in mid-2013."
For an analyst ratings summary and ratings history on NPS Pharmaceuticals Inc. click here. For more ratings news on NPS Pharmaceuticals Inc. click here.
Shares of NPS Pharmaceuticals Inc. closed at $6.52 yesterday.
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