Biotech Values

[Praveen]

CVTX---Forbes

http://www.forbes.com/markets/2005/08/24/cv-therapeutics-earnings-0824markets09.html?partner=yahooti...

Piper Jaffray maintained an "outperform" rating on CV Therapeutics (nasdaq: CVTX - news - people ) after the biotech firm received U.S. Food and Drug Administration approval to expand the label of heart drug Aceon.

CV Therapeutics said data from the trial, dubbed Europa, indicated a relative risk reduction of cardiovascular events compared with a placebo. Aceon, which is co-marketed with Belgium-based Solvay Pharmaceuticals, a unit of Solvay SA, is now indicated for use in both hypertension and in the secondary prevention of coronary artery disease.

"We believe that the inclusion of the Europa data will reposition Aceon within the ACEI [angiotensin converting enzyme inhibitor] market allowing for a successful re-launch and substantial growth," said Piper Jaffray. "We currently assume a conservative peak sales estimate for Aceon of $100 million in the U.S. and note that there is significant leverage in the model with increasing Aceon sales. Every $10 million in additional Aceon sales would represent approximately $0.05 to our outer year CV Therapeutics sales estimates."