Canaccord Comments on NPS Pharma (NPSP) Ahead of Natpara Panel; Maintains 'Buy' Rating

Canaccord Genuity affirms NPS Pharmaceuticals, Inc. (Nasdaq: NPSP) at Buy with a target price of $42 following Q2 results reported earlier in the month.

Analyst John Newman commented:

$220M Gattex revs in 2Q reasonable, await growth progression

2Q14 Gattex revenues are likely to stir discussion regarding growth, but we view the number as a move forward. We believe NPSP will need to raise sales guidance for 2014 for investors to gain conviction long-term on Gattex growth trajectory.

Salesforce expansion should boost growth, but will draw skeptics

Additional sales reps for Gattex and smaller sales territories should recharge growth, but some may see the move as a result of lackluster sales to date. Importantly, we believe NPSP will need more than one quarter to see an inflection in sales growth.

Upside on Natpara Panel Sept 12, quality of life could be in focus

We expect a positive FDA panel for Natpara, an orphan drug treating hypoparathyroidism on Sept 12, but suspect quality of life discussions will drive FDA’s interpretation of the panel vote.

Looking ahead, Newman narrows his FY14 GAAP loss estimate from $0.14 per share down to $0.3 per share.

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

NPS Pharmaceuticals Inc. closed at $27.17 yesterday.

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