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jpm on alth 18 dollar target

JMP Note 8-Apr-10 09:37 am Allos Therapeutics, Inc. (1,3) (ALTH - $8.42; $863.1M market cap): Management meeting points to Folotyn upside; reiterate Market Outperform rating and $18 price target. We hosted a meeting with investors and Allos management to gain insights on the ongoing launch of Folotyn in PTCL as well as expectations for the release of top line results from a Phase II trial for the drug in lung cancer. Based on our meeting, we have increased conviction in the potential for positive lung cancer activity, but we continue to expect the trial results to require the interpretation provided by pre-specified sub-group analysis. We believe the launch in PTCL is progressing at least in line with our and the Street’s expectations and believe that upside to current estimates may rest in a larger than expected patient pool and deeper penetration driven by effective education efforts and interest shown in the community setting. Our 12-month price target of $18 is derived by applying a 30x multiple to our 2013 EPS estimate of $0.90, discounted at 15%. (Charles C. Duncan, PhD) Rating :