Merrill reiterates MGI at buy

MGI Pharma's buy rating was reiterated by Merrill Lynch analyst Eric Ende with a price objective of $28 after the company's shares fell 6.3% Wednesday on fears that additional data may be required for approval of MGI's Dacogen in Europe. Ende said the fall is an overreaction because the majority of European royalty revenues of the drug will pass directly to Supergen. Further, he expected Dacogen to be approved in the United States in the first half of 2006 and said the company is undervalued as its current stock price factors in little or no value for MGI's promising pipeline. Shares of the Bloomington, Minn.-based drug manufacturer were down $0.42, or 2.22%, at $18.49 on volume of 1,819,381 shares versus the three-month running average of 1,290,040 shares.

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