Curis upgrade:
The analyst is even more bullish than I am for projected sales. This is from my Schwab account otherwise I would post a link. If he sees potential peak sales of over a billion dollars, yes BILLION, how can he only give it a price target of $7? GLTA and let's hope he is in the ballpark of future revenue because even if his revenue estimates for only advanced bcc is close, his target is substantially below what the price will be in the future. Royalties of those amounts end up in the bottom line since there are no costs for royalty revenue. Here is the story:
RESEARCH ALERT-Roth Capital raises Curis to buy
10:58 am ET 07/08/2011 - Reuters
* Raises price target to $7 from $4.60
* Sees higher chance of positive study results in two cancer types for main drug
* Shares up 9 pct
July 8 (Reuters) - Roth Capital Partners upgraded Curis Inc to "buy" from "neutral," following a full presentation of mid-stage studies of its cancer drug, vismodegib, sending its shares up 9 percent.
In March, vismodegib, which is being co-developed with Roche Holding's unit Genentech, shrank tumors in patients with advanced basal cell carcinoma (BCC) -- a type of potentially fatal skin cancer.
Analyst Joseph Pantginis now saw higher chances of the drug showing positive results in treating advanced BCC, an indication for which he believes the drug will earn the company $275-$475 million in peak sales. He also sees a 60 percent chance that the drug shows positive results from the current mid-stage study in treating patients with operable BCC. Pantginis estimates peak sales potential of $650-$675 million in operable BCC.
"The combination of potential milestones and royalty flow could have a significant impact in offsetting the burn rate at Curis," Pantginis said.
He also raised his price target on the company's stock to $7 from $4.60.
The analyst saw long-term partnering opportunities from Curis' early-stage cancer compound CUDC-101.
Shares of the Lexington, Massachusetts-based company, which have gained 14 percent since the mid-stage results were reported, were up 5 percent at $3.89 on Friday morning on Nasdaq after climbing as high as $4.03 earlier. (Reporting by Vidya L Nathan in Bangalore; Editing by Sriraj Kalluvila)
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