Jefferies Maintains a 'Buy' on Infinity Pharmaceutical (INFI); Wider Loss, But Sufficient Cash Through 1H13

Jefferies maintains a 'Buy' on Infinity Pharmaceutical (NASDAQ: INFI) price target raised from $7 to $11.

Analyst, Eun K. Yang, said, "Wider 4Q11 loss of $14M (vs. our net loss estimate of $9M); cash of $115M at YE11 should be sufficient thru 1H13 by our estimates (INFI estimates cash into ~2014). Phase 2 data readouts from pipeline products in 2H12 include saridegib (hedgehog inhibitor) in myelofibrosis and retaspimycin in NSCLC." (Lowers FY12 EPS loss from (1.17) to (1.32) and FY13 from (2.30) to (2.43)

"INFI shares have bounced back to the levels prior to its announcement of failed Phase 2 saridegib data in pancreatic cancer on January 27. Resilience of INFI shares shows difficulties in setting PT for early-stage, yet potentially exciting new drug discovery/develoment biotech companies as their valuation can be highly volatile without significant changes in fundamentals. Our revised PT of $11 (vs. $7 previously) includes ~$4/sh for saridegib for myelofibrosis & chondrosarcoma (vs. $2 previously), ~$5 for retaspimycin in NSCLC (vs. $3 previously) and ~$2 (unchanged) for IPI-145 (dual inhibitor of PI3K delta and gamma)."

For an analyst ratings summary and ratings history on Infinity Pharmaceutical click here. For more ratings news on Infinity Pharmaceutical click here.

Shares of Infinity Pharmaceutical closed at $9.41 yesterday.

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