3SBio Shares Jump on Analyst Comment
Thursday September 20, 12:58 pm ET
3SBio Rises After Analyst Says Profit Will Quadruple on Stronger EPIAO Sales
NEW YORK (AP) -- U.S. shares of Chinese biotechnology company 3SBio Inc. climbed Thursday after a CIBC World Markets Corp. analyst said its earnings should quadruple by 2009 as sales of its injectable anemia treatment Epiao improve.
In a client note, analyst Elliot Wilbur said 3SBio leads China's market for erythropoiesis-stimulating agents, or ESAs, which increase the production of red blood cells. ESAs are used to treat anemia caused by chemotherapy or kidney disease. Epiao is an injectable, human-derived ESA.
"An under-penetrated oncology market, coupled with limited competition, offers ample room for future share gain," he said.
The analyst said 3SBio sells high quality drugs at competitive prices. He said Epiao sales are improving, and should continue to rise as 3SBio begins selling pre-filled syringes and signs new exclusive contracts with hospitals.
Wilbur kept an "Outperform" rating and $17 price target on the stock. He expects the company's profit to grow to $1.13 per share in 2009, and said it earned 27 cents per share in 2006. The stock began trading in February.
3SBio shares gained $1.84, or 15.9 percent, to $13.44 in morning trading.
The company is developing a second ESA product called Nuleusin. Its other major drug, TPIAO, is designed to treat a thrombocytopenia, or a shortage of blood platelets.
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