Auriga Maintains a 'Buy' on DepoMed Inc (DEPO); Plans of NDA for Serada

Auriga maintains a 'Buy' on DepoMed Inc (NASDAQ: DEPO) price target of $8.00.

Analyst, Defei Yang, said, "Following an encouraging pre-NDA meeting with the FDA, Depomed announced it plans to file a Serada NDA during second half of the year. We view the investment as worthwhile. If Serada gets approval, we see a valuation on the product to be about $300 million given a $5 million investment. However, we think it is pre-mature to raise our price target on the potential Serada approval as it is still unclear to us the logics FDA will apply with regards to the statistical analysis of phase III results."

For an analyst ratings summary and ratings history on DepoMed Inc click here. For more ratings news on DepoMed Inc click here.

Shares of DepoMed Inc closed at $6.29 yesterday.

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