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[Picassa]

Biodel • BIOD-Nasdaq
Market Outperform • Price 58 cents on April 16
by JMP Securities
Progress with insulin candidates bodes well for advancing clinical development; we are upgrading from Market Perform to Market Outperform rating and introducing a $3 price target. We believe that, based on positive top-line Phase I results... Biodel has identified a commercially viable, ultrafast-acting insulin candidate for progression into Phase II/III development. Importantly, we believe that, based on previous Phase III data and new trial-design considerations, the likelihood of success for this program in later-stage development is above average. Additionally, we point to continuing efforts with the ultra-fast-acting insulin analog and glucagon programs that may provide further clinical catalysts over the coming 12 to 24 months. While we acknowledge that the stock could continue to have a limited investor audience, we believe that there is now an opportunity for longer-term, value-focused investors to begin to accumulate shares. Market cap: $23 million.