Cephalon neutral rating reiterated by Merrill

Merrill Lynch has reiterated its neutral rating for Cephalon, Inc., which is expected to receive FDA approval for its drug Sparlon, used to treat Attention Deficit-Hyperactivity Disorder, on Oct. 20. Analyst Gregory B. Gilbert said the approval could have a "significant positive effect" and set the price objective at $44.86.

The rating remains neutral, however, as the drug contains a higher dose of modafinil than competitor Provigil. Modafinil has been linked to two suspected cases of Stevens Johnson syndrome, a rare but serious adverse drug reaction.

Gilbert said that current ADHD drugs are generally viewed as highly effective, but side effects and scheduling issues (no sampling and no refills) associated with these drugs leave room in the market for other therapies like Sparlon. He predicted a 2006 first-quarter launch, with market share building slowly to 13% by 2010.

Shares of the Frazer, Pa.-based pharmaceutical were up $0.54, or 1.20%, at $45.40 on volume of 924,177 shares, versus the three-month running average of 1,463,360 shares.

Antisoma buy rating reiterated by Jefferies

Jefferies International, Ltd. has reiterated its buy rating for Antisoma. Analyst Nick Turner said that preliminary phase-two clinical data from a study of Antisoma's AS1404 in treating lung cancer has provided encouraging efficacy data that support Jefferies' £0.32 price target.

AS1404 is included in Antisoma's strategic oncology alliance with Roche. Turner predicted that Roche will take the drug into phase-three development, which will trigger a milestone to Antisoma thought to be in the low double-digit millions.

Shares of the London-based biotechnology company were up £0.035, or 18.42%, at £0.225 on volume of 3,282,627 shares versus the three-month running average of 899,117 shares.

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