Pharmasset Rises on UBS Upgrade
Wednesday April 2, 7:57 pm ET
UBS Analyst Lifts Pharmasset Rating to "Buy," Citing Low Share Price, Strong Drug Candidates
NEW YORK (AP) -- Shares of Pharmasset Inc. rose Wednesday, as a UBS analyst upgraded the antiviral drugmaker, citing its low share price and strong hepatitis B and C pipeline.
Analyst Annabel Samimy lifted her rating on Princeton, N.J.-based Pharmasset to "Buy" from "Neutral," ahead of the company's hepatitis C data presentation at the European Association for the Study of the Liver (EASL) meeting on April 25.
"Share price has contracted since the promising R7128 (hepatitis C drg candidate) data emerged, and we believe this creates an attractive entry into a company that has two lead programs with best-in-class potential in the hepatitis B and hepatitis C markets," she wrote in a note to clients.
Samimy noted that previous top-line data on drug candidate R7128 highlighted impressive antiviral responses, with few safety or tolerability issues. Samimy said the EASL presentation will likely provide important details about the safety and resistance profile of the drug.
"We expect some volatility around the EASL Meeting, which will likely permeate across the small/mid-cap biotech sector," she wrote. "Beyond EASL, we expect VRUS will have a relatively quiet year, as both its programs progress. We do not expect major stock-moving catalysts for the remainder of the year, but see 2009 as pivotal."
Pharmasset shares rose 85 cents, or 4.5 percent, to $19.94.
surf's up......crikey
