UPDATE: UBS Starts Sunesis Pharmaceuticals Inc. (SNSS) at Buy

(Updated - June 12, 2014 9:22 AM EDT)

UBS initiated coverage on Sunesis Pharmaceuticals Inc. (NASDAQ: SNSS) with a Buy rating and a price target of $14.00.

Analyst Andrew Peters said, "Key points from our analysis: [1] SNSS provides an exceptionally high risk/reward ahead of the ph3 VALOR read-out in 2H14. We are positively biased on the trial and see asymmetric upside on favorable data. [2] By some metrics, the current valuation implies <20% probability of success to the study (which in our view is clearly overdone). Of note, the trial was designed to maximize the likelihood of success (even with small numerical benefit over placebo), although the adaptive trial design is largely misunderstood by the street. [3] r/rAML represents a clear unmet need in oncology, and our checks suggest broad adoption on positive data with $750m+ in un-adjusted sales. [4] Previous studies in AML have provided a guide for SNSS, with special care taken to ensure proper study conduct and entry criteria. [5] The interim DSMB review suggests the drug is at least minimally active, and in our view lowers risk to positive outcome."

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

Shares of Sunesis Pharmaceuticals Inc. closed at $5.41 yesterday.

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