Biotech Values

[DewDiligence]

VRUS – I normally don’t post a piece that merely announces
an analyst downgrade, but this is an exception. The question
I would like to ask is: What took so long? VRUS was grossly
overpriced, IMO, following the release of preliminary R7128
data in January, yet the analyst waited until the stock fell by
40% to issue a downgrade. (My own take on the VRUS vs
IDIX valuation gap is in #msg-25870940.)

http://biz.yahoo.com/ap/080219/pharmasset_mover.html

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Pharmasset Declines on Downgrade, Analyst Says Clevudine and R7128 Are Priced In

Tuesday February 19, 1:50 pm ET

NEW YORK (AP) -- Shares of Pharmasset Inc. fell Tuesday after a UBS analyst downgraded the stock, saying the value of the company's two most promising drug candidates is now reflected in the share price.

Annabel Samimy said Pharmasset may be able to offer the best treatments for both Hepatitis B and C drugs, with clevudine and R7128. Although she said both drugs are promising, she said the stock price now reflects their value, and Pharmasset will not have much news to report for the rest of 2008.

The stock gave up $1.53, or 7.1 percent, to $19.97 in afternoon trading.

Samimy downgraded the stock to "Neutral" from "Buy," and raised her price target to $23 per share from $17. She said both drugs are appear safe and effective, and their markets have significant room for growth.

Pharmasset's share price more than doubled in January after the company reported clinical trial results that showed R7128, combined with two other drugs, lowered the Hepatitis C virus to undetectable levels after four weeks of treatment.

But after the company reports full results, she said, Pharmasset will have little data to offer until mid-2009.
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