DARA BioSciences, Inc. (DARA)

[Ned Serious]

Thanks for this notice. I searched and found the following snippets of info from Jason's updates. Also is a link to the FULL PDF:

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DARA - $.52 - ZACK's Buy Rating - Update 2/6/14

Highlights below from the PDF...

February 6, 2014
Jason Napodano, CFA
[e-mail]

PDF Link: http://scr.zacks.com/files/doc_coverage/Biotech%20-%20Jason%20Napodano/DARA/February%206%202014_DARA_Napodano.pdf

ODD Status: …No Update On KRN5500 ODD…

DARA’s Form 10K filed on February 4, 2014 provided little update on the status of the pending Orphan Drug Designation (ODD) decision from the U.S. FDA on KRN5500. The language from the annual report (posted below) is similar to the last update from the company in November 2013:

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We had a brief conversation with the company for the preparation of this report. Management told us they remain in “active dialogue” with the U.S. FDA on the ODD application. This is important because many investors have asked us if the application has been rejected or moved to the back burner at either the agency of the company. This does not seem to be the case. We are hoping for a decision in the next few months.

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We believe DARA’s stock remains attractively valued. Revenues in 2012 were non-existent. In 2013, revenues totaled only $0.42 million, again…pretty low.

However, based on the recent sales force expansion and the three new products DARA is now co-promoting from Mission Pharmacal, we think DARA can do over $2.0 million in revenues in 2014 and $10+ million in revenues in 2016. If our modeling holds, the stock should be trading at over $5.00 by year-end 2014 (post-split), and that is based solely on the six current marketed products and has no value for KRN5500. We think orphan drug designation on KRN5500 could triple the market value of the company. A licensing partner will probably be announced soon after the FDA’s decision. Our conclusion is that investors can buy DARA now and get both an emerging specialty pharmaceutical story at a reasonable price, and a Phase 2b drug in KRN5500 for free.

Current Recommendation Buy
Prior Recommendation Neutral
Date of Last Change 09/13/2012

Current Price (02/06/14) $0.52
Target Price $1.50