JMP reiterates NeoPharm as strong buy

JMP Securities analyst Charles C. Duncan reiterated its strong buy rating with a $19 price target of biopharmaceutical company NeoPharm, Inc. after preliminary data of cintredekin showed promise in broader brain cancer use. At an annual meeting of the Congress of Neurological Surgeons, NeoPharm presented phase I data from a study of cintredekin besudotox in newly diagnosed brain cancer patients, which showed the drug is safe and could be used with radiation and Temozolomide, JMP Securities said. Shares of the Lake Forest, Ill.-based company were down $.067, or 6.45%, at $9.72 on volume of 624,893 shares versus the three-month running average of 269,585 shares.

Merrill Lynch keeps Genentech buy rating

Genentech Inc. was maintained at a buy rating with a price target of $103 by Merrill Lynch analyst Eric J. Ende, who also said earnings per share were raised to $0.35 from estimates of $0.32 due to the faster-than-expected adoption of Herceptin for breast cancer and Avastin for colorectoal and lung cancer. The company also said the potential earnings per share effect of the Cabilly patent loss would be much less than expected, removing the possible overhang for the stock, Merrill Lynch said. Shares of the South San Francisco, Calif.-based biopharmaceutical company were up $2.59, or 3.16%, at $84.59 on volume of 11,897,000 versus the three-month running average of 4,200,700 shares.

Genentech kept at outperform by Bear Stearns

Genentech Inc. was maintained at an outperform rating with a price target of $96 by Bear Stearns analyst Mark Schoenebaum after third quarter updates show the company will benefit from increased sales of Avastin for colorectal and lung cancer and Herceptin for breast cancer. Third-quarter earnings per share came in at $0.35 versus Bear Stearns' estimates of $0.27. Bear Stearns also said impact from the Cabilly patent revenue was minimal. Shares of the South San Francisco, Calif.-based company were up $2.59, or 3.16%, at $84.59 on volume of 11,897,000 versus the three-month running average of 4,200,700 shares.

Jefferies reiterates Genentech's buy rating

Jefferies & Co., Inc. analyst Adam A. Walsh maintained Genentech Inc. at buy rating with a price target of $98 after the company announced its third quarter earnings per share were $0.35, $0.04 more than the Jefferies estimate. Jefferies said sales of Avastin for colorectal and lung cancer and Herceptin for breast cancer were higher than expected. Jefferies also raised earnings estimates for the next three fiscal years. Underlying strength of the business, pipeline advancement, positive data at upcoming meetings and label expansions set the stage for an upside in the stock, Jefferies said. Shares of the South San Francisco, Calif.-based company were up $2.59, or 3.16%, at $84.59 on volume of 11,897,000 versus the three-month running average of 4,200,700 shares.

OSI cut to peer perform by Bear Stearns

OSI Pharmaceuticals was downgraded to peer perform with a price target of $26.79 per share by Bear Stearns analyst Akhtar Samad after a slowdown in second-quarter and third-quarter sales of the drug Tarceva. Bear Stearns said Tarceva sales of $73.2 million did not meet estimates of $78 million for the third quarter due to an inventory drawdown. Bear Stearns also reduced U.S. Tarceva estimates for 2005 and 2006 and cut the peak worldwide. Shares of the Melville, N.Y.-based biopharmaceutical company were down $1.61, or 6.01%, at $25.18 on volume of 4,348,820 shares versus the three-month running average of 2,513,720 shares.

Merrill raises Protein Design objective to $37

Merrill Lynch analyst Thomas McGahren raised the price objective of Protein Design Labs Inc. to $37 from $33 on news that it will receive higher-than-expected royalty revenues in view of Genentech, Inc.'s excellent third-quarter results. Merrill Lynch said Genentech reported higher than expected results for sales of antibody products for which Protein Design Labs receives royalties. Shares of the Fremont, Calif.-based company were down $0.75, or 2.67%, at $27.34 on volume of 2,458,837 shares versus the three-month running average of 1,839,690 shares.

Jefferies maintains NeuTec at 640p target

NeuTec was maintained at a price target of 640p by Jefferies International Ltd. analyst Robin Campbell on news that fiscal year 2005 results showed progress, focusing on Mycograb's European filing for fungal infections, Aurograb recruitment into its phase III program and a recently started Mycograb phase Ib in advanced breast cancer. Jefferies said the Mycograb commercialization strategy looks clearer and a positive decision by European regulators is likely in the first quarter of 2006. Shares closed unchanged at 480p.

Merrill Lynch keeps QLT at neutral

QLT Inc. was maintained at a neutral rating by Merrill Lynch analyst Hari Sambasivam on news that Sanofi-Aventis is expecting to report its global sales of Eligard on Nov. 8 at levels lower than estimates, a potential area of weakness for the quarter. Merrill Lynch said it could revisit the rating following disclosure of data from the Anchor study comparing Visudyne versus Lucentis and other factors. Shares of the Vancouver, B.C.-based biopharmaceutical company were down $0.15, or 2.04%, at $7.19 on volume of 883,704 shares versus the three-month running average of 1,247,070 shares.

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