RBC starts Avigen at outperform

RBC Capital Markets analyst Michael J. Yee began coverage of Avigen, Inc. with an outperform, speculative risk, rating. Yee believes Avigen's lead candidate AV650 (tolperisone) for spasticity has relatively low clinical risk, with years of approved use in central Europe and positive data from numerous clinical trials. Tolperisone has a competitive advantage of efficacy without sedation. Avigen's current market cap of only $129 million with $80 million in cash and no debt reflects an underappreciated opportunity. Continued stock appreciation is expected as the company advances towards late stage clinical development, according to the analyst. Shares of the Alameda, Calif.-based development stage company were down 3 cents, or 0.53%, at $5.60. (Nasdaq: AVGN)

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