UPDATE - Canaccord Genuity Downgraded Ardea Biosciences (RDEA) To 'Hold'; Q1 Is Non-Event In Light Of Acquisition By AZN
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Price: $31.96 --0%
Rating Summary:
6 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - Canaccord Genuity downgraded Ardea Biosciences (NASDAQ: RDEA) from Buy to Hold, price target maintained at $28.00.
Analyst, Salveen Richter, said, "RDEA reported 1Q12 EPS of $(1.25), below consensus of $(0.98) and CGe of $(0.99) primarily due to higher GAAP R&D expense associated with the progression of the P3 lesinurad program and P1 next-generation study (RDEA3170) in gout. With four lesinurad P3 trials underway, the key focus for RDEA is on six-month data from these trials, which is expected in 1Q13 (one-year data is expected in 4Q13). We continue to believe the P3 lesinurad program has a high likelihood of success based on positive P2 data and favorable physician feedback. Assuming YE13 regulatory filings, we model for 1Q15 U.S. and E.U. approvals (U.S. could be 2H14 if no delays) in the allopurinol inadequate/intolerant, Uloric-intolerant and tophaceous gout markets, a $1.1B WW peak opportunity in 2020. Given RDEA is in a definitive
merger agreement with AstraZeneca (NYSE: AZN) to be acquired for $32/share, there is a floor set for the stock at current levels. As a result, we are downgrading to Hold."
To see more ratings on RDEA, Click Here
Analyst, Salveen Richter, said, "RDEA reported 1Q12 EPS of $(1.25), below consensus of $(0.98) and CGe of $(0.99) primarily due to higher GAAP R&D expense associated with the progression of the P3 lesinurad program and P1 next-generation study (RDEA3170) in gout. With four lesinurad P3 trials underway, the key focus for RDEA is on six-month data from these trials, which is expected in 1Q13 (one-year data is expected in 4Q13). We continue to believe the P3 lesinurad program has a high likelihood of success based on positive P2 data and favorable physician feedback. Assuming YE13 regulatory filings, we model for 1Q15 U.S. and E.U. approvals (U.S. could be 2H14 if no delays) in the allopurinol inadequate/intolerant, Uloric-intolerant and tophaceous gout markets, a $1.1B WW peak opportunity in 2020. Given RDEA is in a definitive
merger agreement with AstraZeneca (NYSE: AZN) to be acquired for $32/share, there is a floor set for the stock at current levels. As a result, we are downgrading to Hold."
To see more ratings on RDEA, Click Here
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