Intellipharmaceutics International Inc. (IPCI)

[tonypro99]

IN A NOTE TO CLIENTS:

Maxim Maintains Buy On Intellipharmaceutics Following License Agreement With Teva :

Maxim’s healthcare analyst Jason Kolbert is weighing in with an update on Intellipharmaceutics International (NASDAQ:IPCI), as the company announced the it has signed a license agreement with global generic leader, Teva (NYSE:TEVA). The analyst rates the stock a Buy with a $7 price target, which implies an upside of 236% from current levels.

Kolbert noted, “We don’t know which ANDA Teva licensed but we do know the terms of this deal are more favorable, over the long run, to the company than the deal with Parr for Focalin done so many years ago. We assume their is a specified profit share agreement and modest milestones associated as well.”

The analyst added, “A deal with Teva is validating and we are now seeing the best of both worlds. ANDA driven deals that should fund the company as 505B2 pipeline products advance.”

“We expect the stock to be driven by approvals of its generic drug ANDAs and revenues from sales and royalties. We value IPCI based on the average of our estimated FCF, discounted EPS, and sum-of-the-parts models for a price target of $7 per share.”


http://www.investorvillage.com/smbd.asp?mb=17573


Brean Murray, Carret & Co.- the full-service, boutique investment bank dedicated to small cap and emerging growth companies recently issued a Buy Rating and a $7 Target Price for IntelliPharmaCeutics, What's more, there could be several more FDA approvals coming right behind this Lic.deal.
In the note to clients, the Brean group says, "We see several near-term catalysts for Intellipharmaceutics, notably its Rexista dataset, a potential Rexista partnership, and initiation of Rexista trials.Positive data for Rexista could lead to a partnership that generates a significant upfront payment. Also it could clarify Rexista's potential market timing."The fact is, the relatively undiscovered Canadian firm now has numerous ANDAs being reviewed by the FDA for approval, yet as recently as last month, shares had traded as low as $2.00.Reported sales by others for branded and generic versions of the products in IPCI's pipeline are approximately $8.5 billion. The company develops both ANDA product candidates and new drugs through the New Drug Application (NDA) 505(b)(2) regulatory pathway and if they manage to finally get the go ahead of a couple of anda's, the important endorsement for their drug platform could see shares appreciate significantly in the months and years ahead.